TIP vs. HYG
TIP (iShares TIPS Bond ETF) and HYG (iShares iBoxx $ High Yield Corporate Bond ETF) are both exchange-traded funds - TIP is a Inflation-Protected Bonds fund tracking the Barclays Capital U.S. Treasury Inflation Protected Securities (TIPS) Index (Series-L), while HYG is a High Yield Bonds fund tracking the iBoxx $ Liquid High Yield Index. Both are passively managed. Over the past 10 years, TIP returned 2.57%/yr vs 4.94%/yr for HYG. At a 0.09 correlation, their price movements are largely independent. TIP charges 0.19%/yr vs 0.49%/yr for HYG.
Performance
TIP vs. HYG - Performance Comparison
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Returns By Period
In the year-to-date period, TIP achieves a 1.54% return, which is significantly higher than HYG's 1.32% return. Over the past 10 years, TIP has underperformed HYG with an annualized return of 2.57%, while HYG has yielded a comparatively higher 4.94% annualized return.
TIP
- 1D
- -0.18%
- 1M
- -0.09%
- YTD
- 1.54%
- 6M
- 1.06%
- 1Y
- 4.96%
- 3Y*
- 3.88%
- 5Y*
- 0.97%
- 10Y*
- 2.57%
HYG
- 1D
- -0.28%
- 1M
- 0.36%
- YTD
- 1.32%
- 6M
- 1.73%
- 1Y
- 6.51%
- 3Y*
- 8.48%
- 5Y*
- 3.77%
- 10Y*
- 4.94%
TIP vs. HYG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
TIP iShares TIPS Bond ETF | 1.54% | 6.77% | 1.65% | 3.80% | -12.26% | 5.68% | 10.84% | 8.35% | -1.42% | 2.92% |
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 1.32% | 8.59% | 7.97% | 11.54% | -10.98% | 3.76% | 4.47% | 14.09% | -2.02% | 6.07% |
Correlation
The correlation between TIP and HYG is 0.47, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.47 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.55 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.45 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.28 |
Correlation (All Time) Calculated using the full available price history since Apr 12, 2007 | 0.09 |
Over the past year, TIP and HYG have become more correlated (0.47) than their long-term average of 0.09, meaning their price movements have been converging.
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Return for Risk
TIP vs. HYG — Risk / Return Rank
TIP
HYG
TIP vs. HYG - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares TIPS Bond ETF (TIP) and iShares iBoxx $ High Yield Corporate Bond ETF (HYG). 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 | HYG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.26 | ||
| Sortino ratioReturn per unit of downside risk | -0.35 | ||
| Omega ratioGain probability vs. loss probability | 1.26 | 1.33 | -0.07 |
| Calmar ratioReturn relative to maximum drawdown | 2.52 | 2.79 | -0.27 |
| Martin ratioReturn relative to average drawdown | 7.57 | 12.34 | -4.76 |
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 | HYG | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.46 | 1.72 | -0.26 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.16 | 0.50 | -0.35 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.45 | 0.60 | -0.15 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.57 | 0.46 | +0.12 |
Drawdowns
TIP vs. HYG - Drawdown Comparison
The maximum TIP drawdown since its inception was -14.57%, smaller than the maximum HYG drawdown of -34.25%. Use the drawdown chart below to compare losses from any high point for TIP and HYG.
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Drawdown Indicators
| TIP | HYG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -14.57% | -34.25% | +19.68% |
Max Drawdown (1Y)Largest decline over 1 year | -1.98% | -2.34% | +0.36% |
Max Drawdown (3Y)Largest decline over 3 years | -4.54% | -4.56% | +0.02% |
Max Drawdown (5Y)Largest decline over 5 years | -14.51% | -15.79% | +1.28% |
Max Drawdown (10Y)Largest decline over 10 years | -14.51% | -22.03% | +7.52% |
Current DrawdownCurrent decline from peak | -0.32% | -0.28% | -0.04% |
Average DrawdownAverage peak-to-trough decline | -3.43% | -3.24% | -0.19% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.66% | 0.53% | +0.13% |
Volatility
TIP vs. HYG - Volatility Comparison
The current volatility for iShares TIPS Bond ETF (TIP) is 0.89%, while iShares iBoxx $ High Yield Corporate Bond ETF (HYG) has a volatility of 1.21%. This indicates that TIP experiences smaller price fluctuations and is considered to be less risky than HYG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TIP | HYG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.89% | 1.21% | -0.32% |
Volatility (6M)Calculated over the trailing 6-month period | 2.29% | 3.01% | -0.72% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.41% | 3.81% | -0.40% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.21% | 7.53% | -1.32% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.74% | 8.29% | -2.55% |
TIP vs. HYG - Expense Ratio Comparison
TIP has a 0.19% expense ratio, which is lower than HYG's 0.49% expense ratio.
Dividends
TIP vs. HYG - Dividend Comparison
TIP's dividend yield for the trailing twelve months is around 3.76%, less than HYG's 5.92% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 5.92% | 5.71% | 6.01% | 5.74% | 5.30% | 4.02% | 4.88% | 4.99% | 5.54% | 5.12% | 5.27% | 5.90% |
TIP iShares TIPS Bond ETF | 3.76% | 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 HYG have a correlation of 0.47, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
HYG has higher volatility (1.21%) compared to TIP (0.89%). In terms of maximum drawdown, TIP dropped -14.57% vs HYG's -34.25%.
On 10-year performance, HYG leads with 4.94% vs 2.57% for TIP. On fees, TIP is cheaper at 0.19% per year. On volatility, TIP has been the lower-risk option at 0.89%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, HYG has performed better with a 4.94% return vs 2.57%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
TIP is cheaper with a 0.19% expense ratio, compared with 0.49% for HYG.
HYG has the higher dividend yield at 5.92%, compared with 3.76% for TIP.
TIP is categorized as Inflation-Protected Bonds, while HYG is High Yield Bonds. TIP tracks Barclays Capital U.S. Treasury Inflation Protected Securities (TIPS) Index (Series-L), while HYG tracks iBoxx $ Liquid High Yield Index. Their fees differ too: 0.19% for TIP and 0.49% for HYG.
HYG currently has the higher Sharpe Ratio (1.72 vs 1.46), 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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