TIP vs. GOVT
TIP (iShares TIPS Bond ETF) and GOVT (iShares U.S. Treasury Bond ETF) are both exchange-traded funds - TIP is a Inflation-Protected Bonds fund tracking the ICE U.S. Treasury Inflation Linked Bond Index, while GOVT is a Government Bonds fund tracking the ICE U.S. Treasury Core Bond Index. Both are passively managed. Over the past 10 years, TIP returned 2.45%/yr vs 0.79%/yr for GOVT. A 0.76 correlation means they provide meaningful diversification when combined. TIP charges 0.18%/yr vs 0.05%/yr for GOVT.
Performance
TIP vs. GOVT - Performance Comparison
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Returns By Period
In the year-to-date period, TIP achieves a 0.95% return, which is significantly higher than GOVT's -0.44% return. Over the past 10 years, TIP has outperformed GOVT with an annualized return of 2.45%, while GOVT has yielded a comparatively lower 0.79% annualized return.
TIP
- 1D
- -0.11%
- 1M
- -0.90%
- YTD
- 0.95%
- 6M
- 0.97%
- 1Y
- 4.81%
- 3Y*
- 3.70%
- 5Y*
- 0.88%
- 10Y*
- 2.45%
GOVT
- 1D
- -0.11%
- 1M
- -0.70%
- YTD
- -0.44%
- 6M
- -0.15%
- 1Y
- 3.62%
- 3Y*
- 2.77%
- 5Y*
- -0.59%
- 10Y*
- 0.79%
TIP vs. GOVT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
TIP iShares TIPS Bond ETF | 0.95% | 6.77% | 1.65% | 3.80% | -12.26% | 5.68% | 10.84% | 8.35% | -1.42% | 2.92% |
GOVT iShares U.S. Treasury Bond ETF | -0.44% | 3.77% | 2.95% | 4.17% | -13.39% | -1.11% | 7.28% | 7.36% | 0.26% | 2.19% |
Correlation
The correlation between TIP and GOVT is 0.85, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.85 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.89 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.78 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.77 |
Correlation (All Time) Calculated using the full available price history since Feb 27, 2012 | 0.76 |
The correlation between TIP and GOVT shifts across timeframes, from 0.76 (all time) to 0.89 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
TIP vs. GOVT — Risk / Return Rank
TIP
GOVT
TIP vs. GOVT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares TIPS Bond ETF (TIP) and iShares U.S. Treasury Bond ETF (GOVT). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| TIP | GOVT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.41 | ||
| Sortino ratioReturn per unit of downside risk | +0.67 | ||
| Omega ratioGain probability vs. loss probability | 1.26 | 1.17 | +0.08 |
| Calmar ratioReturn relative to maximum drawdown | 2.45 | 1.27 | +1.17 |
| Martin ratioReturn relative to average drawdown | 7.37 | 3.66 | +3.71 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| TIP | GOVT | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.43 | 1.02 | +0.41 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.14 | -0.10 | +0.24 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.43 | 0.15 | +0.28 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.57 | 0.25 | +0.31 |
Drawdowns
TIP vs. GOVT - Drawdown Comparison
The maximum TIP drawdown since its inception was -14.57%, smaller than the maximum GOVT drawdown of -19.07%. Use the drawdown chart below to compare losses from any high point for TIP and GOVT.
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Drawdown Indicators
| TIP | GOVT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -14.57% | -19.07% | +4.50% |
Max Drawdown (1Y)Largest decline over 1 year | -1.98% | -2.85% | +0.87% |
Max Drawdown (3Y)Largest decline over 3 years | -4.54% | -5.43% | +0.89% |
Max Drawdown (5Y)Largest decline over 5 years | -14.51% | -16.60% | +2.09% |
Max Drawdown (10Y)Largest decline over 10 years | -14.51% | -19.07% | +4.56% |
Current DrawdownCurrent decline from peak | -0.90% | -7.48% | +6.58% |
Average DrawdownAverage peak-to-trough decline | -3.43% | -5.25% | +1.82% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.65% | 0.99% | -0.34% |
Volatility
TIP vs. GOVT - Volatility Comparison
iShares TIPS Bond ETF (TIP) and iShares U.S. Treasury Bond ETF (GOVT) have volatilities of 1.01% and 1.05%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TIP | GOVT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.01% | 1.05% | -0.04% |
Volatility (6M)Calculated over the trailing 6-month period | 2.33% | 2.53% | -0.20% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.38% | 3.56% | -0.18% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.21% | 6.04% | +0.17% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.74% | 5.23% | +0.51% |
TIP vs. GOVT - Expense Ratio Comparison
TIP has a 0.18% expense ratio, which is higher than GOVT's 0.05% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
TIP vs. GOVT - Dividend Comparison
TIP's dividend yield for the trailing twelve months is around 3.78%, more than GOVT's 3.60% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
GOVT iShares U.S. Treasury Bond ETF | 3.60% | 3.49% | 3.14% | 2.65% | 1.77% | 0.96% | 2.17% | 1.98% | 1.97% | 1.57% | 1.40% | 1.25% |
TIP iShares TIPS Bond ETF | 3.78% | 3.46% | 2.52% | 2.73% | 6.96% | 4.28% | 1.17% | 1.75% | 2.71% | 2.07% | 1.48% | 0.34% |
Frequently Asked Questions
TIP and GOVT have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
GOVT has higher volatility (1.05%) compared to TIP (1.01%). In terms of maximum drawdown, TIP dropped -14.57% vs GOVT's -19.07%.
On 10-year performance, TIP leads with 2.45% vs 0.79% for GOVT. On fees, GOVT is cheaper at 0.05% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, TIP has performed better with a 2.45% return vs 0.79%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
GOVT is cheaper with a 0.05% expense ratio, compared with 0.18% for TIP.
TIP has the higher dividend yield at 3.78%, compared with 3.60% for GOVT.
TIP is categorized as Inflation-Protected Bonds, while GOVT is Government Bonds. TIP tracks ICE U.S. Treasury Inflation Linked Bond Index, while GOVT tracks ICE U.S. Treasury Core Bond Index. Their fees differ too: 0.18% for TIP and 0.05% for GOVT.
TIP currently has the higher Sharpe Ratio (1.43 vs 1.02), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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