TIP vs. IBID
TIP (iShares TIPS Bond ETF) and IBID (iShares iBonds Oct 2027 Term TIPS ETF) are both Inflation-Protected Bonds funds from iShares - TIP tracks the ICE U.S. Treasury Inflation Linked Bond Index while IBID tracks the ICE 2027 Maturity US Inflation-Linked Treasury Index. Both are passively managed. Over the past year, TIP returned 4.96% vs 4.83% for IBID. A 0.70 correlation means they provide meaningful diversification when combined. TIP charges 0.18%/yr vs 0.10%/yr for IBID.
Performance
TIP vs. IBID - Performance Comparison
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Returns By Period
In the year-to-date period, TIP achieves a 1.54% return, which is significantly lower than IBID's 2.46% 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%
IBID
- 1D
- 0.08%
- 1M
- 0.49%
- YTD
- 2.46%
- 6M
- 2.57%
- 1Y
- 4.83%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
TIP vs. IBID - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | |
|---|---|---|---|---|
TIP iShares TIPS Bond ETF | 1.54% | 6.77% | 1.65% | 3.14% |
IBID iShares iBonds Oct 2027 Term TIPS ETF | 2.46% | 5.66% | 4.71% | 2.61% |
Correlation
The correlation between TIP and IBID is 0.43, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.43 |
Correlation (All Time) Calculated using the full available price history since Sep 18, 2023 | 0.70 |
Over the past year, the correlation between TIP and IBID has dropped to 0.43 - well below their long-term average of 0.70, suggesting their price drivers have been diverging.
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Return for Risk
TIP vs. IBID — Risk / Return Rank
TIP
IBID
TIP vs. IBID - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares TIPS Bond ETF (TIP) and iShares iBonds Oct 2027 Term TIPS ETF (IBID). 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 | IBID | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.45 | ||
| Sortino ratioReturn per unit of downside risk | -4.51 | ||
| Omega ratioGain probability vs. loss probability | 1.26 | 1.94 | -0.68 |
| Calmar ratioReturn relative to maximum drawdown | 2.52 | 13.33 | -10.80 |
| Martin ratioReturn relative to average drawdown | 7.57 | 39.52 | -31.95 |
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 | IBID | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.46 | 3.91 | -2.45 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.16 | — | — |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.45 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.57 | 2.56 | -1.99 |
Drawdowns
TIP vs. IBID - Drawdown Comparison
The maximum TIP drawdown since its inception was -14.57%, which is greater than IBID's maximum drawdown of -1.28%. Use the drawdown chart below to compare losses from any high point for TIP and IBID.
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Drawdown Indicators
| TIP | IBID | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -14.57% | -1.28% | -13.29% |
Max Drawdown (1Y)Largest decline over 1 year | -1.98% | -0.36% | -1.62% |
Max Drawdown (3Y)Largest decline over 3 years | -4.54% | — | — |
Max Drawdown (5Y)Largest decline over 5 years | -14.51% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -14.51% | — | — |
Current DrawdownCurrent decline from peak | -0.32% | 0.00% | -0.32% |
Average DrawdownAverage peak-to-trough decline | -3.43% | -0.22% | -3.21% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.66% | 0.12% | +0.54% |
Volatility
TIP vs. IBID - Volatility Comparison
iShares TIPS Bond ETF (TIP) has a higher volatility of 0.89% compared to iShares iBonds Oct 2027 Term TIPS ETF (IBID) at 0.32%. This indicates that TIP's price experiences larger fluctuations and is considered to be riskier than IBID based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TIP | IBID | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.89% | 0.32% | +0.57% |
Volatility (6M)Calculated over the trailing 6-month period | 2.29% | 0.80% | +1.49% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.41% | 1.25% | +2.16% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.21% | 2.25% | +3.96% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.74% | 2.25% | +3.49% |
TIP vs. IBID - Expense Ratio Comparison
TIP has a 0.18% expense ratio, which is higher than IBID's 0.10% 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. IBID - Dividend Comparison
TIP's dividend yield for the trailing twelve months is around 3.76%, more than IBID's 3.66% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IBID iShares iBonds Oct 2027 Term TIPS ETF | 3.66% | 4.43% | 4.24% | 0.81% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
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 IBID have a correlation of 0.43, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TIP has higher volatility (0.89%) compared to IBID (0.32%). In terms of maximum drawdown, TIP dropped -14.57% vs IBID's -1.28%.
On 1-year performance, TIP leads with 4.96% vs 4.83% for IBID. On fees, IBID is cheaper at 0.10% per year. On volatility, IBID has been the lower-risk option at 0.32%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, TIP has performed better with a 4.96% return vs 4.83%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IBID is cheaper with a 0.10% expense ratio, compared with 0.18% for TIP.
TIP has the higher dividend yield at 3.76%, compared with 3.66% for IBID.
TIP tracks ICE U.S. Treasury Inflation Linked Bond Index, while IBID tracks ICE 2027 Maturity US Inflation-Linked Treasury Index. Their fees differ too: 0.18% for TIP and 0.10% for IBID.
IBID currently has the higher Sharpe Ratio (3.91 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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