TIP vs. TIPZ
Compare and contrast key facts about iShares TIPS Bond ETF (TIP) and PIMCO Broad US TIPS Index ETF (TIPZ).
TIP and TIPZ 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. TIPZ is a passively managed fund by PIMCO that tracks the performance of the ICE BofA US Inflation-Linked Treasury. It was launched on Sep 3, 2009. Both TIP and TIPZ are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: TIP or TIPZ.
Performance
TIP vs. TIPZ - Performance Comparison
Returns By Period
The year-to-date returns for both stocks are quite close, with TIP having a 2.54% return and TIPZ slightly lower at 2.45%. Both investments have delivered pretty close results over the past 10 years, with TIP having a 2.06% annualized return and TIPZ not far ahead at 2.11%.
TIP
2.54%
-0.60%
2.54%
5.68%
1.87%
2.06%
TIPZ
2.45%
-0.74%
2.30%
6.14%
1.88%
2.11%
Key characteristics
| TIP | TIPZ | |
|---|---|---|
| Sharpe Ratio | 1.11 | 1.17 |
| Sortino Ratio | 1.64 | 1.73 |
| Omega Ratio | 1.20 | 1.21 |
| Calmar Ratio | 0.44 | 0.45 |
| Martin Ratio | 4.68 | 4.84 |
| Ulcer Index | 1.17% | 1.22% |
| Daily Std Dev | 4.92% | 5.04% |
| Max Drawdown | -14.56% | -15.41% |
| Current Drawdown | -7.09% | -7.54% |
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TIP vs. TIPZ - Expense Ratio Comparison
TIP has a 0.19% expense ratio, which is lower than TIPZ's 0.20% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Correlation
The correlation between TIP and TIPZ is 0.92, 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.
Risk-Adjusted Performance
TIP vs. TIPZ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares TIPS Bond ETF (TIP) and PIMCO Broad US TIPS Index ETF (TIPZ). 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.
Dividends
TIP vs. TIPZ - Dividend Comparison
TIP's dividend yield for the trailing twelve months is around 2.40%, less than TIPZ's 4.87% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TIP iShares TIPS Bond ETF | 2.40% | 2.73% | 6.96% | 4.28% | 1.17% | 1.75% | 2.71% | 2.07% | 1.48% | 0.34% | 1.67% | 1.15% |
TIPZ PIMCO Broad US TIPS Index ETF | 4.87% | 5.21% | 7.14% | 4.83% | 1.47% | 1.65% | 2.41% | 1.70% | 1.06% | 0.56% | 1.09% | 0.73% |
Drawdowns
TIP vs. TIPZ - Drawdown Comparison
The maximum TIP drawdown since its inception was -14.56%, smaller than the maximum TIPZ drawdown of -15.41%. Use the drawdown chart below to compare losses from any high point for TIP and TIPZ. For additional features, visit the drawdowns tool.
Volatility
TIP vs. TIPZ - Volatility Comparison
iShares TIPS Bond ETF (TIP) and PIMCO Broad US TIPS Index ETF (TIPZ) have volatilities of 1.12% and 1.13%, 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.