TIP vs. TDTF

Last updated Apr 1, 2026

Compare and contrast key facts about iShares TIPS Bond ETF (TIP) and FlexShares iBoxx 5-Year Target Duration TIPS Index Fund (TDTF).

TIP and TDTF are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. TIP is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. Treasury Inflation Protected Securities (TIPS) Index (Series-L). It was launched on Dec 4, 2003. TDTF is a passively managed fund by Northern Trust that tracks the performance of the iBoxx 5-Year Target Duration TIPS. It was launched on Sep 19, 2011. Both TIP and TDTF are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.

Performance

TIP vs. TDTF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares TIPS Bond ETF (TIP) and FlexShares iBoxx 5-Year Target Duration TIPS Index Fund (TDTF). The values are adjusted to include any dividend payments, if applicable.

TIP vs. TDTF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TIP iShares TIPS Bond ETF	0.41%	6.77%	1.65%	3.80%	-12.26%	5.68%	10.84%	8.35%	-1.42%	2.92%
TDTF FlexShares iBoxx 5-Year Target Duration TIPS Index Fund	0.61%	7.83%	2.40%	4.10%	-9.73%	5.54%	9.98%	7.99%	-0.82%	1.93%

Returns By Period

In the year-to-date period, TIP achieves a 0.41% return, which is significantly lower than TDTF's 0.61% return. Over the past 10 years, TIP has underperformed TDTF with an annualized return of 2.49%, while TDTF has yielded a comparatively higher 2.88% annualized return.

TIP

• 1D: 0.01%
• 1M: -1.36%
• YTD: 0.41%
• 6M: 0.33%
• 1Y: 2.82%
• 3Y*: 2.98%
• 5Y*: 1.24%
• 10Y*: 2.49%

TDTF

• 1D: 0.08%
• 1M: -0.92%
• YTD: 0.61%
• 6M: 0.78%
• 1Y: 3.85%
• 3Y*: 3.71%
• 5Y*: 2.01%
• 10Y*: 2.88%

*Multi-year figures are annualized to reflect compound growth (CAGR)

TIP vs. TDTF - Expense Ratio Comparison

TIP has a 0.19% expense ratio, which is higher than TDTF's 0.18% 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%.

TIP

iShares TIPS Bond ETF

TDTF

FlexShares iBoxx 5-Year Target Duration TIPS Index Fund

Return for Risk

TIP vs. TDTF — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

TIP

TIP Risk / Return Rank: 40
TIP Sharpe Ratio Rank: 39
TIP Sortino Ratio Rank: 35
TIP Omega Ratio Rank: 33
TIP Calmar Ratio Rank: 51
TIP Martin Ratio Rank: 39

TDTF

TDTF Risk / Return Rank: 59
TDTF Sharpe Ratio Rank: 59
TDTF Sortino Ratio Rank: 57
TDTF Omega Ratio Rank: 50
TDTF Calmar Ratio Rank: 67
TDTF Martin Ratio Rank: 63

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. TDTF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares TIPS Bond ETF (TIP) and FlexShares iBoxx 5-Year Target Duration TIPS Index Fund (TDTF). 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	TDTF	Difference
Sharpe ratio Return per unit of total volatility	0.68	1.02	-0.34
Sortino ratio Return per unit of downside risk	0.95	1.45	-0.50
Omega ratio Gain probability vs. loss probability	1.12	1.19	-0.07
Calmar ratio Return relative to maximum drawdown	1.18	1.65	-0.47
Martin ratio Return relative to average drawdown	3.44	6.16	-2.72
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. TDTF - Sharpe Ratio Comparison

The current TIP Sharpe Ratio is 0.68, which is lower than the TDTF Sharpe Ratio of 1.02. The chart below compares the historical Sharpe Ratios of TIP and TDTF, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	TIP	TDTF	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.68	1.02	-0.34
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.20	0.35	-0.15
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.43	0.57	-0.14
Sharpe Ratio (All Time) Calculated using the full available price history	0.57	0.46	+0.10

Correlation

The correlation between TIP and TDTF is 0.89, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.

Dividends

TIP vs. TDTF - Dividend Comparison

TIP's dividend yield for the trailing twelve months is around 3.45%, less than TDTF's 4.37% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TIP iShares TIPS Bond ETF	2.80%	3.46%	2.52%	2.73%	6.96%	4.28%	1.17%	1.75%	2.71%	2.07%	1.48%	0.34%
TDTF FlexShares iBoxx 5-Year Target Duration TIPS Index Fund	3.58%	4.58%	3.98%	3.97%	7.60%	4.55%	1.13%	1.80%	2.60%	2.20%	1.51%	0.21%

Drawdowns

TIP vs. TDTF - Drawdown Comparison

The maximum TIP drawdown since its inception was -14.57%, which is greater than TDTF's maximum drawdown of -12.02%. Use the drawdown chart below to compare losses from any high point for TIP and TDTF.

Drawdown Indicators

	TIP	TDTF	Difference
Max Drawdown Largest peak-to-trough decline	-14.57%	-12.02%	-2.55%
Max Drawdown (1Y) Largest decline over 1 year	-2.74%	-2.56%	-0.18%
Max Drawdown (5Y) Largest decline over 5 years	-14.51%	-12.02%	-2.49%
Max Drawdown (10Y) Largest decline over 10 years	-14.51%	-12.02%	-2.49%
Current Drawdown Current decline from peak	-1.36%	-0.92%	-0.44%
Average Drawdown Average peak-to-trough decline	-3.46%	-2.94%	-0.52%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.94%	0.69%	+0.25%

Volatility

TIP vs. TDTF - Volatility Comparison

iShares TIPS Bond ETF (TIP) has a higher volatility of 1.41% compared to FlexShares iBoxx 5-Year Target Duration TIPS Index Fund (TDTF) at 1.15%. This indicates that TIP's price experiences larger fluctuations and is considered to be riskier than TDTF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TIP	TDTF	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.41%	1.15%	+0.26%
Volatility (6M) Calculated over the trailing 6-month period	2.35%	2.11%	+0.24%
Volatility (1Y) Calculated over the trailing 1-year period	4.17%	3.82%	+0.35%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.23%	5.70%	+0.53%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.75%	5.08%	+0.67%