TIPZ vs. STIP
Compare and contrast key facts about PIMCO Broad US TIPS Index ETF (TIPZ) and iShares 0-5 Year TIPS Bond ETF (STIP).
TIPZ and STIP are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. 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. STIP is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Years Index (Series-L). It was launched on Dec 1, 2010. Both TIPZ and STIP 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: TIPZ or STIP.
Key characteristics
| TIPZ | STIP | |
|---|---|---|
| YTD Return | 2.04% | 4.29% |
| 1Y Return | 6.35% | 6.06% |
| 3Y Return (Ann) | -2.57% | 1.83% |
| 5Y Return (Ann) | 1.93% | 3.47% |
| 10Y Return (Ann) | 2.09% | 2.37% |
| Sharpe Ratio | 1.15 | 2.88 |
| Sortino Ratio | 1.70 | 4.78 |
| Omega Ratio | 1.20 | 1.62 |
| Calmar Ratio | 0.44 | 3.92 |
| Martin Ratio | 5.02 | 22.15 |
| Ulcer Index | 1.16% | 0.26% |
| Daily Std Dev | 5.08% | 2.04% |
| Max Drawdown | -15.41% | -5.50% |
| Current Drawdown | -7.91% | -0.73% |
Correlation
The correlation between TIPZ and STIP is 0.72, 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.
Performance
TIPZ vs. STIP - Performance Comparison
In the year-to-date period, TIPZ achieves a 2.04% return, which is significantly lower than STIP's 4.29% return. Over the past 10 years, TIPZ has underperformed STIP with an annualized return of 2.09%, while STIP has yielded a comparatively higher 2.37% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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TIPZ vs. STIP - Expense Ratio Comparison
TIPZ has a 0.20% expense ratio, which is higher than STIP's 0.06% 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%.
Risk-Adjusted Performance
TIPZ vs. STIP - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for PIMCO Broad US TIPS Index ETF (TIPZ) and iShares 0-5 Year TIPS Bond ETF (STIP). 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
TIPZ vs. STIP - Dividend Comparison
TIPZ's dividend yield for the trailing twelve months is around 4.89%, more than STIP's 2.46% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TIPZ PIMCO Broad US TIPS Index ETF | 4.89% | 5.21% | 7.14% | 4.83% | 1.47% | 1.65% | 2.41% | 1.70% | 1.06% | 0.56% | 1.09% | 0.73% |
STIP iShares 0-5 Year TIPS Bond ETF | 2.46% | 2.84% | 6.04% | 4.15% | 1.40% | 2.06% | 2.43% | 1.59% | 0.89% | 0.00% | 0.75% | 0.31% |
Drawdowns
TIPZ vs. STIP - Drawdown Comparison
The maximum TIPZ drawdown since its inception was -15.41%, which is greater than STIP's maximum drawdown of -5.50%. Use the drawdown chart below to compare losses from any high point for TIPZ and STIP. For additional features, visit the drawdowns tool.
Volatility
TIPZ vs. STIP - Volatility Comparison
PIMCO Broad US TIPS Index ETF (TIPZ) has a higher volatility of 1.32% compared to iShares 0-5 Year TIPS Bond ETF (STIP) at 0.47%. This indicates that TIPZ's price experiences larger fluctuations and is considered to be riskier than STIP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.