TIP vs. XYLD
TIP (iShares TIPS Bond ETF) and XYLD (Global X S&P 500 Covered Call ETF) are both exchange-traded funds - TIP is a Inflation-Protected Bonds fund tracking the ICE U.S. Treasury Inflation Linked Bond Index, while XYLD is a Derivative Income fund tracking the Cboe S&P 500 BuyWrite Index. Both are passively managed. Over the past 10 years, TIP returned 2.45%/yr vs 8.23%/yr for XYLD. At a correlation of -0.01, they often move in opposite directions. TIP charges 0.18%/yr vs 0.60%/yr for XYLD.
Performance
TIP vs. XYLD - Performance Comparison
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Returns By Period
In the year-to-date period, TIP achieves a 0.95% return, which is significantly lower than XYLD's 4.47% return. Over the past 10 years, TIP has underperformed XYLD with an annualized return of 2.45%, while XYLD has yielded a comparatively higher 8.23% 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%
XYLD
- 1D
- 0.27%
- 1M
- 0.88%
- YTD
- 4.47%
- 6M
- 5.83%
- 1Y
- 16.60%
- 3Y*
- 10.96%
- 5Y*
- 7.62%
- 10Y*
- 8.23%
TIP vs. XYLD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
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% |
XYLD Global X S&P 500 Covered Call ETF | 4.47% | 8.02% | 19.49% | 11.10% | -12.05% | 19.59% | -0.56% | 21.41% | -6.09% | 16.49% |
Correlation
The correlation between TIP and XYLD is 0.18, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.18 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.13 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.14 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.03 |
Correlation (All Time) Calculated using the full available price history since Jun 24, 2013 | -0.01 |
The correlation between TIP and XYLD shifts across timeframes, from -0.01 (all time) to 0.18 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
TIP vs. XYLD — Risk / Return Rank
TIP
XYLD
TIP vs. XYLD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares TIPS Bond ETF (TIP) and Global X S&P 500 Covered Call ETF (XYLD). 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 | XYLD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.10 | ||
| Sortino ratioReturn per unit of downside risk | -1.38 | ||
| Omega ratioGain probability vs. loss probability | 1.26 | 1.59 | -0.34 |
| Calmar ratioReturn relative to maximum drawdown | 2.45 | 3.15 | -0.70 |
| Martin ratioReturn relative to average drawdown | 7.37 | 16.73 | -9.36 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| TIP | XYLD | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.43 | 2.53 | -1.10 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.14 | 0.68 | -0.54 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.43 | 0.58 | -0.15 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.57 | 0.60 | -0.03 |
Drawdowns
TIP vs. XYLD - Drawdown Comparison
The maximum TIP drawdown since its inception was -14.57%, smaller than the maximum XYLD drawdown of -33.46%. Use the drawdown chart below to compare losses from any high point for TIP and XYLD.
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Drawdown Indicators
| TIP | XYLD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -14.57% | -33.46% | +18.89% |
Max Drawdown (1Y)Largest decline over 1 year | -1.98% | -5.29% | +3.31% |
Max Drawdown (3Y)Largest decline over 3 years | -4.54% | -15.53% | +10.99% |
Max Drawdown (5Y)Largest decline over 5 years | -14.51% | -18.66% | +4.15% |
Max Drawdown (10Y)Largest decline over 10 years | -14.51% | -33.46% | +18.95% |
Current DrawdownCurrent decline from peak | -0.90% | -0.64% | -0.26% |
Average DrawdownAverage peak-to-trough decline | -3.43% | -3.72% | +0.29% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.65% | 0.99% | -0.34% |
Volatility
TIP vs. XYLD - Volatility Comparison
The current volatility for iShares TIPS Bond ETF (TIP) is 1.01%, while Global X S&P 500 Covered Call ETF (XYLD) has a volatility of 1.33%. This indicates that TIP experiences smaller price fluctuations and is considered to be less risky than XYLD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TIP | XYLD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.01% | 1.33% | -0.32% |
Volatility (6M)Calculated over the trailing 6-month period | 2.33% | 5.46% | -3.13% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.38% | 6.60% | -3.22% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.21% | 11.23% | -5.02% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.74% | 14.21% | -8.47% |
TIP vs. XYLD - Expense Ratio Comparison
TIP has a 0.18% expense ratio, which is lower than XYLD's 0.60% expense ratio.
Dividends
TIP vs. XYLD - Dividend Comparison
TIP's dividend yield for the trailing twelve months is around 3.78%, less than XYLD's 10.57% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
XYLD Global X S&P 500 Covered Call ETF | 10.57% | 10.51% | 11.54% | 10.51% | 13.43% | 9.07% | 7.93% | 5.76% | 7.12% | 5.18% | 3.23% | 4.65% |
Frequently Asked Questions
TIP and XYLD have a correlation of 0.18, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XYLD has higher volatility (1.33%) compared to TIP (1.01%). In terms of maximum drawdown, TIP dropped -14.57% vs XYLD's -33.46%.
On 10-year performance, XYLD leads with 8.23% vs 2.45% for TIP. On fees, TIP is cheaper at 0.18% 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, XYLD has performed better with a 8.23% return vs 2.45%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
TIP is cheaper with a 0.18% expense ratio, compared with 0.60% for XYLD.
XYLD has the higher dividend yield at 10.57%, compared with 3.78% for TIP.
TIP is categorized as Inflation-Protected Bonds, while XYLD is Derivative Income. TIP tracks ICE U.S. Treasury Inflation Linked Bond Index, while XYLD tracks Cboe S&P 500 BuyWrite Index. They also come from different issuers: iShares and Global X. Their fees differ too: 0.18% for TIP and 0.60% for XYLD.
XYLD currently has the higher Sharpe Ratio (2.53 vs 1.43), 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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