PortfoliosLab logoPortfoliosLab logo

Documentation

Upgrade your plan
TIP vs. XLRE
Performance
Return for Risk
Drawdowns
Volatility
Dividends

TIP vs. XLRE

Last updated Jun 9, 2026

TIP (iShares TIPS Bond ETF) and XLRE (Real Estate Select Sector SPDR Fund) are both exchange-traded funds - TIP is a Inflation-Protected Bonds fund tracking the ICE U.S. Treasury Inflation Linked Bond Index, while XLRE is a REIT fund tracking the Real Estate Select Sector Index. Both are passively managed. Over the past 10 years, TIP returned 2.45%/yr vs 6.77%/yr for XLRE. At a 0.24 correlation, their price movements are largely independent. TIP charges 0.18%/yr vs 0.13%/yr for XLRE.

Performance

TIP vs. XLRE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares TIPS Bond ETF (TIP) and Real Estate Select Sector SPDR Fund (XLRE). The values are adjusted to include any dividend payments, if applicable.

Loading charts...

Returns By Period

In the year-to-date period, TIP achieves a 0.95% return, which is significantly lower than XLRE's 9.85% return. Over the past 10 years, TIP has underperformed XLRE with an annualized return of 2.45%, while XLRE has yielded a comparatively higher 6.77% annualized return.

TIP

1D
-0.11%
1M
-0.90%
YTD
0.95%
6M
0.97%
1Y
4.81%
3Y*
3.70%
5Y*
0.88%
10Y*
2.45%

XLRE

1D
-1.50%
1M
-0.86%
YTD
9.85%
6M
9.99%
1Y
8.79%
3Y*
9.56%
5Y*
2.78%
10Y*
6.77%
*Multi-year figures are annualized to reflect compound growth (CAGR)

TIP vs. XLRE - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
TIP
iShares TIPS Bond ETF		0.95%6.77%1.65%3.80%-12.26%5.68%10.84%8.35%-1.42%2.92%
XLRE
Real Estate Select Sector SPDR Fund		9.85%2.63%5.09%12.36%-26.25%46.10%-2.18%28.68%-2.39%10.69%

Correlation

The correlation between TIP and XLRE is 0.30, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.30

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

0.37

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

0.32

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

0.25

Correlation (All Time)
Calculated using the full available price history since Oct 9, 2015

0.24

The correlation between TIP and XLRE shifts across timeframes, from 0.24 (all time) to 0.37 (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

Real Estate Select Sector SPDR Fund

Often compared with TIP:
TIP vs. SCHPTIP vs. VTIPTIP vs. SGOVTIP vs. STIPTIP vs. FIPDXTIP vs. BNDTIP vs. IEF
Often compared with XLRE:
XLRE vs. VNQXLRE vs. SCHHXLRE vs. SPYXLRE vs. USRTXLRE vs. IYRXLRE vs. REETXLRE vs. FREL

Return for Risk

TIP vs. XLRE — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
TIP
TIP Risk / Return Rank: 4848
Overall Rank
TIP Sharpe Ratio Rank: 4545
Sharpe Ratio Rank
TIP Sortino Ratio Rank: 5050
Sortino Ratio Rank
TIP Omega Ratio Rank: 4444
Omega Ratio Rank
TIP Calmar Ratio Rank: 5454
Calmar Ratio Rank
TIP Martin Ratio Rank: 4848
Martin Ratio Rank
XLRE
XLRE Risk / Return Rank: 2222
Overall Rank
XLRE Sharpe Ratio Rank: 2121
Sharpe Ratio Rank
XLRE Sortino Ratio Rank: 2020
Sortino Ratio Rank
XLRE Omega Ratio Rank: 2020
Omega Ratio Rank
XLRE Calmar Ratio Rank: 2424
Calmar Ratio Rank
XLRE Martin Ratio Rank: 2424
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. XLRE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares TIPS Bond ETF (TIP) and Real Estate Select Sector SPDR Fund (XLRE). 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.

TIPXLREDifference
Sharpe ratioReturn per unit of total volatility
1.43
0.65

+0.79

Sortino ratioReturn per unit of downside risk
2.21
0.95

+1.25

Omega ratioGain probability vs. loss probability

1.26

1.12

+0.14

Calmar ratioReturn relative to maximum drawdown

2.45

1.06

+1.39

Martin ratioReturn relative to average drawdown

7.37

2.91

+4.46

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. XLRE - Sharpe Ratio Comparison

The current TIP Sharpe Ratio is 1.43, which is higher than the XLRE Sharpe Ratio of 0.65. The chart below compares the historical Sharpe Ratios of TIP and XLRE, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Loading charts...

Sharpe Ratios by Period

TIPXLREDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.43

0.65

+0.79

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.14

0.15

0.00

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.43

0.33

+0.09

Sharpe Ratio (All Time)

Calculated using the full available price history

0.57

0.35

+0.21

Drawdowns

TIP vs. XLRE - Drawdown Comparison

The maximum TIP drawdown since its inception was -14.57%, smaller than the maximum XLRE drawdown of -38.83%. Use the drawdown chart below to compare losses from any high point for TIP and XLRE.

Loading charts...

Drawdown Indicators

TIPXLREDifference

Max Drawdown

Largest peak-to-trough decline

-14.57%

-38.83%

+24.26%

Max Drawdown (1Y)

Largest decline over 1 year

-1.98%

-8.33%

+6.35%

Max Drawdown (3Y)

Largest decline over 3 years

-4.54%

-16.74%

+12.20%

Max Drawdown (5Y)

Largest decline over 5 years

-14.51%

-34.12%

+19.61%

Max Drawdown (10Y)

Largest decline over 10 years

-14.51%

-38.83%

+24.32%

Current Drawdown

Current decline from peak

-0.90%

-1.82%

+0.92%

Average Drawdown

Average peak-to-trough decline

-3.43%

-9.60%

+6.17%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.65%

3.03%

-2.38%

Volatility

TIP vs. XLRE - Volatility Comparison

The current volatility for iShares TIPS Bond ETF (TIP) is 1.01%, while Real Estate Select Sector SPDR Fund (XLRE) has a volatility of 4.31%. This indicates that TIP experiences smaller price fluctuations and is considered to be less risky than XLRE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Loading charts...

Volatility by Period

TIPXLREDifference

Volatility (1M)

Calculated over the trailing 1-month period

1.01%

4.31%

-3.30%

Volatility (6M)

Calculated over the trailing 6-month period

2.33%

10.00%

-7.67%

Volatility (1Y)

Calculated over the trailing 1-year period

3.38%

13.70%

-10.32%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

6.21%

19.09%

-12.88%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

5.74%

20.42%

-14.68%

TIP vs. XLRE - Expense Ratio Comparison

TIP has a 0.18% expense ratio, which is higher than XLRE's 0.13% 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. XLRE - Dividend Comparison

TIP's dividend yield for the trailing twelve months is around 3.78%, more than XLRE's 3.18% yield.

PositionTTM20252024202320222021202020192018201720162015
TIP
iShares TIPS Bond ETF		3.78%3.46%2.52%2.73%6.96%4.28%1.17%1.75%2.71%2.07%1.48%0.34%
XLRE
Real Estate Select Sector SPDR Fund		3.18%3.45%3.43%3.31%3.70%2.61%3.15%3.06%3.78%3.25%4.22%1.09%

Frequently Asked Questions

TIP and XLRE have a correlation of 0.30, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

XLRE has higher volatility (4.31%) compared to TIP (1.01%). In terms of maximum drawdown, TIP dropped -14.57% vs XLRE's -38.83%.

On 10-year performance, XLRE leads with 6.77% vs 2.45% for TIP. On fees, XLRE is cheaper at 0.13% per year. On volatility, TIP has been the lower-risk option at 1.01%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, XLRE has performed better with a 6.77% return vs 2.45%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

XLRE is cheaper with a 0.13% expense ratio, compared with 0.18% for TIP.

TIP has the higher dividend yield at 3.78%, compared with 3.18% for XLRE.

TIP is categorized as Inflation-Protected Bonds, while XLRE is REIT. TIP tracks ICE U.S. Treasury Inflation Linked Bond Index, while XLRE tracks Real Estate Select Sector Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.18% for TIP and 0.13% for XLRE.

TIP currently has the higher Sharpe Ratio (1.43 vs 0.65), 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.

Portfolio Optimizer

Find the right allocation for TIP and XLRE

Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.

Open Portfolio Optimizer