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TIP vs. TDTF
Performance
Return for Risk
Drawdowns
Volatility
Dividends

TIP vs. TDTF

Last updated Jun 4, 2026

TIP (iShares TIPS Bond ETF) and TDTF (FlexShares iBoxx 5-Year Target Duration TIPS Index Fund) are both Inflation-Protected Bonds funds - TIP tracks the ICE U.S. Treasury Inflation Linked Bond Index while TDTF tracks the iBoxx 5-Year Target Duration TIPS. Both are passively managed. Over the past 10 years, TIP returned 2.57%/yr vs 2.93%/yr for TDTF. Their correlation of 0.89 suggests significant overlap in exposure. Both charge a 0.18% expense ratio.

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.

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Returns By Period

The year-to-date returns for both stocks are quite close, with TIP having a 1.54% return and TDTF slightly lower at 1.52%. Over the past 10 years, TIP has underperformed TDTF with an annualized return of 2.57%, while TDTF has yielded a comparatively higher 2.93% 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%

TDTF

1D
-0.13%
1M
-0.44%
YTD
1.52%
6M
1.18%
1Y
5.07%
3Y*
4.56%
5Y*
1.72%
10Y*
2.93%
*Multi-year figures are annualized to reflect compound growth (CAGR)

TIP vs. TDTF - 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%
TDTF
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund		1.52%7.83%2.40%4.10%-9.73%5.54%9.98%7.99%-0.82%1.93%

Correlation

The correlation between TIP and TDTF is 0.92, 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

0.92

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

0.94

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

0.95

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

0.93

Correlation (All Time)
Calculated using the full available price history since Sep 23, 2011

0.89

The correlation between TIP and TDTF has been stable across timeframes, ranging from 0.89 to 0.95 - a consistent structural relationship.

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

FlexShares iBoxx 5-Year Target Duration TIPS Index Fund

Often compared with TIP:
TIP vs. SCHPTIP vs. VTIPTIP vs. SGOVTIP vs. STIPTIP vs. FIPDXTIP vs. BNDTIP vs. IEF
Often compared with TDTF:
TDTF vs. JSCPTDTF vs. VABSTDTF vs. SPYTDTF vs. SPIBTDTF vs. JPLDTDTF vs. VTIPTDTF vs. CPII

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: 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
TDTF
TDTF Risk / Return Rank: 5454
Overall Rank
TDTF Sharpe Ratio Rank: 4848
Sharpe Ratio Rank
TDTF Sortino Ratio Rank: 5252
Sortino Ratio Rank
TDTF Omega Ratio Rank: 4848
Omega Ratio Rank
TDTF Calmar Ratio Rank: 6565
Calmar Ratio Rank
TDTF Martin Ratio Rank: 6060
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. 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.

TIPTDTFDifference
Sharpe ratioReturn per unit of total volatility
1.46
1.67

-0.21

Sortino ratioReturn per unit of downside risk
2.24
2.55

-0.31

Omega ratioGain probability vs. loss probability

1.26

1.30

-0.04

Calmar ratioReturn relative to maximum drawdown

2.52

3.22

-0.70

Martin ratioReturn relative to average drawdown

7.57

10.66

-3.09

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 1.46, which is comparable to the TDTF Sharpe Ratio of 1.67. The chart below compares the historical Sharpe Ratios of TIP and TDTF, 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

TIPTDTFDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.46

1.67

-0.21

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.16

0.30

-0.15

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.45

0.58

-0.13

Sharpe Ratio (All Time)

Calculated using the full available price history

0.57

0.47

+0.10

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.

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Drawdown Indicators

TIPTDTFDifference

Max Drawdown

Largest peak-to-trough decline

-14.57%

-12.02%

-2.55%

Max Drawdown (1Y)

Largest decline over 1 year

-1.98%

-1.58%

-0.40%

Max Drawdown (3Y)

Largest decline over 3 years

-4.54%

-3.79%

-0.75%

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

-0.32%

-0.57%

+0.25%

Average Drawdown

Average peak-to-trough decline

-3.43%

-2.91%

-0.52%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.66%

0.48%

+0.18%

Volatility

TIP vs. TDTF - Volatility Comparison

iShares TIPS Bond ETF (TIP) has a higher volatility of 0.89% compared to FlexShares iBoxx 5-Year Target Duration TIPS Index Fund (TDTF) at 0.73%. 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.

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Volatility by Period

TIPTDTFDifference

Volatility (1M)

Calculated over the trailing 1-month period

0.89%

0.73%

+0.16%

Volatility (6M)

Calculated over the trailing 6-month period

2.29%

1.97%

+0.32%

Volatility (1Y)

Calculated over the trailing 1-year period

3.41%

3.06%

+0.35%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

6.21%

5.69%

+0.52%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

5.74%

5.07%

+0.67%

TIP vs. TDTF - Expense Ratio Comparison

Both TIP and TDTF have an expense ratio of 0.18%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

TIP vs. TDTF - Dividend Comparison

TIP's dividend yield for the trailing twelve months is around 3.76%, less than TDTF's 4.71% yield.

PositionTTM20252024202320222021202020192018201720162015
TDTF
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund		4.71%4.58%3.98%3.97%7.60%4.55%1.13%1.80%2.60%2.20%1.51%0.21%
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

With a correlation of 0.92, TIP and TDTF move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

TIP has higher volatility (0.89%) compared to TDTF (0.73%). In terms of maximum drawdown, TIP dropped -14.57% vs TDTF's -12.02%.

On 10-year performance, TDTF leads with 2.93% vs 2.57% for TIP. Both ETFs have the same 0.18% expense ratio. On volatility, TDTF has been the lower-risk option at 0.73%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, TDTF has performed better with a 2.93% return vs 2.57%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

TIP and TDTF have the same expense ratio: 0.18% per year.

TDTF has the higher dividend yield at 4.71%, compared with 3.76% for TIP.

TIP tracks ICE U.S. Treasury Inflation Linked Bond Index, while TDTF tracks iBoxx 5-Year Target Duration TIPS. They also come from different issuers: iShares and Northern Trust.

TDTF currently has the higher Sharpe Ratio (1.67 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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