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TIP vs. IEI
Performance
Return for Risk
Drawdowns
Volatility
Dividends

TIP vs. IEI

Last updated Jun 4, 2026

TIP (iShares TIPS Bond ETF) and IEI (iShares 3-7 Year 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 IEI is a Government Bonds fund tracking the ICE U.S. Treasury 3-7 Year Bond Index. Both are passively managed. Over the past 10 years, TIP returned 2.57%/yr vs 1.28%/yr for IEI. A 0.75 correlation means they provide meaningful diversification when combined. TIP charges 0.18%/yr vs 0.15%/yr for IEI.

Performance

TIP vs. IEI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares TIPS Bond ETF (TIP) and iShares 3-7 Year Treasury Bond ETF (IEI). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, TIP achieves a 1.54% return, which is significantly higher than IEI's -0.42% return. Over the past 10 years, TIP has outperformed IEI with an annualized return of 2.57%, while IEI has yielded a comparatively lower 1.28% 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%

IEI

1D
-0.13%
1M
-0.17%
YTD
-0.42%
6M
-0.49%
1Y
3.28%
3Y*
3.52%
5Y*
0.23%
10Y*
1.28%
*Multi-year figures are annualized to reflect compound growth (CAGR)

TIP vs. IEI - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
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%
IEI
iShares 3-7 Year Treasury Bond ETF		-0.42%6.96%1.81%4.42%-9.51%-2.54%6.95%5.71%1.36%1.22%

Correlation

The correlation between TIP and IEI is 0.84, 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

0.84

Correlation (3Y)
Calculated over the trailing 3-year period

0.87

Correlation (5Y)
Calculated over the trailing 5-year period

0.78

Correlation (10Y)
Calculated over the trailing 10-year period

0.76

Correlation (All Time)
Calculated using the full available price history since Jan 12, 2007

0.75

The correlation between TIP and IEI shifts across timeframes, from 0.75 (all time) to 0.87 (3 years), reflecting how their relationship changes across market environments.

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares TIPS Bond ETF

iShares 3-7 Year Treasury Bond ETF

Often compared with TIP:
TIP vs. SCHPTIP vs. VTIPTIP vs. SGOVTIP vs. STIPTIP vs. FIPDXTIP vs. BNDTIP vs. IEF
Often compared with IEI:
IEI vs. IEFIEI vs. VGITIEI vs. TLTIEI vs. BNDIEI vs. TLHIEI vs. IMTBIEI vs. BSV

Return for Risk

TIP vs. IEI — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
TIP
TIP Risk / Return Rank: 4444
Overall Rank
TIP Sharpe Ratio Rank: 4040
Sharpe Ratio Rank
TIP Sortino Ratio Rank: 4444
Sortino Ratio Rank
TIP Omega Ratio Rank: 3939
Omega Ratio Rank
TIP Calmar Ratio Rank: 5050
Calmar Ratio Rank
TIP Martin Ratio Rank: 4545
Martin Ratio Rank
IEI
IEI Risk / Return Rank: 2828
Overall Rank
IEI Sharpe Ratio Rank: 2929
Sharpe Ratio Rank
IEI Sortino Ratio Rank: 3030
Sortino Ratio Rank
IEI Omega Ratio Rank: 2727
Omega Ratio Rank
IEI Calmar Ratio Rank: 2727
Calmar Ratio Rank
IEI Martin Ratio Rank: 2727
Martin Ratio Rank
The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

TIP vs. IEI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares TIPS Bond ETF (TIP) and iShares 3-7 Year Treasury Bond ETF (IEI). 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.

TIPIEIDifference
Sharpe ratioReturn per unit of total volatility
1.46
1.09

+0.37

Sortino ratioReturn per unit of downside risk
2.24
1.65

+0.59

Omega ratioGain probability vs. loss probability

1.26

1.19

+0.07

Calmar ratioReturn relative to maximum drawdown

2.52

1.32

+1.20

Martin ratioReturn relative to average drawdown

7.57

3.96

+3.61

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TIP vs. IEI - Sharpe Ratio Comparison

The current TIP Sharpe Ratio is 1.46, which is higher than the IEI Sharpe Ratio of 1.09. The chart below compares the historical Sharpe Ratios of TIP and IEI, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

TIPIEIDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.46

1.09

+0.37

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.16

0.05

+0.11

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.45

0.33

+0.12

Sharpe Ratio (All Time)

Calculated using the full available price history

0.57

0.70

-0.13

Drawdowns

TIP vs. IEI - Drawdown Comparison

The maximum TIP drawdown since its inception was -14.57%, roughly equal to the maximum IEI drawdown of -14.60%. Use the drawdown chart below to compare losses from any high point for TIP and IEI.

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Drawdown Indicators

TIPIEIDifference

Max Drawdown

Largest peak-to-trough decline

-14.57%

-14.60%

+0.03%

Max Drawdown (1Y)

Largest decline over 1 year

-1.98%

-2.50%

+0.52%

Max Drawdown (3Y)

Largest decline over 3 years

-4.54%

-3.66%

-0.88%

Max Drawdown (5Y)

Largest decline over 5 years

-14.51%

-13.88%

-0.63%

Max Drawdown (10Y)

Largest decline over 10 years

-14.51%

-14.60%

+0.09%

Current Drawdown

Current decline from peak

-0.32%

-1.85%

+1.53%

Average Drawdown

Average peak-to-trough decline

-3.43%

-2.67%

-0.76%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.66%

0.83%

-0.17%

Volatility

TIP vs. IEI - Volatility Comparison

iShares TIPS Bond ETF (TIP) and iShares 3-7 Year Treasury Bond ETF (IEI) have volatilities of 0.89% and 0.91%, 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

TIPIEIDifference

Volatility (1M)

Calculated over the trailing 1-month period

0.89%

0.91%

-0.02%

Volatility (6M)

Calculated over the trailing 6-month period

2.29%

2.13%

+0.16%

Volatility (1Y)

Calculated over the trailing 1-year period

3.41%

3.04%

+0.37%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

6.21%

4.77%

+1.44%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

5.74%

3.93%

+1.81%

TIP vs. IEI - Expense Ratio Comparison

TIP has a 0.18% expense ratio, which is higher than IEI's 0.15% 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. IEI - Dividend Comparison

TIP's dividend yield for the trailing twelve months is around 3.76%, more than IEI's 3.64% yield.

PositionTTM20252024202320222021202020192018201720162015
IEI
iShares 3-7 Year Treasury Bond ETF		3.64%3.48%3.18%2.36%1.37%0.73%1.12%2.01%1.95%1.51%1.33%1.39%
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 IEI have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

IEI has higher volatility (0.91%) compared to TIP (0.89%). In terms of maximum drawdown, TIP dropped -14.57% vs IEI's -14.60%.

On 10-year performance, TIP leads with 2.57% vs 1.28% for IEI. On fees, IEI is cheaper at 0.15% 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 2.57% return vs 1.28%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

IEI is cheaper with a 0.15% expense ratio, compared with 0.18% for TIP.

TIP has the higher dividend yield at 3.76%, compared with 3.64% for IEI.

TIP is categorized as Inflation-Protected Bonds, while IEI is Government Bonds. TIP tracks ICE U.S. Treasury Inflation Linked Bond Index, while IEI tracks ICE U.S. Treasury 3-7 Year Bond Index. Their fees differ too: 0.18% for TIP and 0.15% for IEI.

TIP currently has the higher Sharpe Ratio (1.46 vs 1.09), 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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