TIPZ vs. TDTF

Last updated Jun 4, 2026

TIPZ (PIMCO Broad US TIPS Index ETF) and TDTF (FlexShares iBoxx 5-Year Target Duration TIPS Index Fund) are both Inflation-Protected Bonds funds - TIPZ tracks the ICE BofA US Inflation-Linked Treasury while TDTF tracks the iBoxx 5-Year Target Duration TIPS. Both are passively managed. Over the past 10 years, TIPZ returned 2.49%/yr vs 2.93%/yr for TDTF. Their correlation of 0.84 suggests significant overlap in exposure. TIPZ charges 0.20%/yr vs 0.18%/yr for TDTF.

Performance

TIPZ vs. TDTF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PIMCO Broad US TIPS Index ETF (TIPZ) and FlexShares iBoxx 5-Year Target Duration TIPS Index Fund (TDTF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TIPZ achieves a 2.58% return, which is significantly higher than TDTF's 1.52% return. Over the past 10 years, TIPZ has underperformed TDTF with an annualized return of 2.49%, while TDTF has yielded a comparatively higher 2.93% annualized return.

TIPZ

• 1D: -0.20%
• 1M: -0.01%
• YTD: 2.58%
• 6M: 1.00%
• 1Y: 5.12%
• 3Y*: 3.86%
• 5Y*: 0.77%
• 10Y*: 2.49%

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)

TIPZ vs. TDTF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TIPZ PIMCO Broad US TIPS Index ETF	2.58%	5.87%	1.52%	3.37%	-12.67%	5.48%	10.98%	8.64%	-1.65%	3.12%
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 TIPZ and TDTF is 0.87, 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	0.87
Correlation (3Y) Calculated over the trailing 3-year period	0.92
Correlation (5Y) Calculated over the trailing 5-year period	0.92
Correlation (10Y) Calculated over the trailing 10-year period	0.89
Correlation (All Time) Calculated using the full available price history since Sep 23, 2011	0.84

The correlation between TIPZ and TDTF has been stable across timeframes, ranging from 0.84 to 0.92 - a consistent structural relationship.

Return for Risk

TIPZ vs. TDTF — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

TIPZ

TIPZ Risk / Return Rank: 40
TIPZ Sharpe Ratio Rank: 36
TIPZ Sortino Ratio Rank: 37
TIPZ Omega Ratio Rank: 37
TIPZ Calmar Ratio Rank: 48
TIPZ Martin Ratio Rank: 45

TDTF

TDTF Risk / Return Rank: 54
TDTF Sharpe Ratio Rank: 48
TDTF Sortino Ratio Rank: 52
TDTF Omega Ratio Rank: 48
TDTF Calmar Ratio Rank: 65
TDTF Martin Ratio Rank: 60

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.

TIPZ vs. TDTF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PIMCO Broad US TIPS Index ETF (TIPZ) 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.

	TIPZ	TDTF	Difference
Sharpe ratio Return per unit of total volatility	1.31	1.67	-0.35
Sortino ratio Return per unit of downside risk	1.93	2.55	-0.61
Omega ratio Gain probability vs. loss probability	1.24	1.30	-0.06
Calmar ratio Return relative to maximum drawdown	2.36	3.22	-0.86
Martin ratio Return relative to average drawdown	7.37	10.66	-3.29
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TIPZ vs. TDTF - Sharpe Ratio Comparison

The current TIPZ Sharpe Ratio is 1.31, which is comparable to the TDTF Sharpe Ratio of 1.67. The chart below compares the historical Sharpe Ratios of TIPZ 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.

Sharpe Ratios by Period

	TIPZ	TDTF	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.31	1.67	-0.35
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.12	0.30	-0.18
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	0.53	0.47	+0.05

Drawdowns

TIPZ vs. TDTF - Drawdown Comparison

The maximum TIPZ drawdown since its inception was -15.77%, which is greater than TDTF's maximum drawdown of -12.02%. Use the drawdown chart below to compare losses from any high point for TIPZ and TDTF.

Drawdown Indicators

	TIPZ	TDTF	Difference
Max Drawdown Largest peak-to-trough decline	-15.77%	-12.02%	-3.75%
Max Drawdown (1Y) Largest decline over 1 year	-2.18%	-1.58%	-0.60%
Max Drawdown (3Y) Largest decline over 3 years	-4.74%	-3.79%	-0.95%
Max Drawdown (5Y) Largest decline over 5 years	-15.77%	-12.02%	-3.75%
Max Drawdown (10Y) Largest decline over 10 years	-15.77%	-12.02%	-3.75%
Current Drawdown Current decline from peak	-1.44%	-0.57%	-0.87%
Average Drawdown Average peak-to-trough decline	-4.33%	-2.91%	-1.42%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.70%	0.48%	+0.22%

Volatility

TIPZ vs. TDTF - Volatility Comparison

PIMCO Broad US TIPS Index ETF (TIPZ) has a higher volatility of 0.96% compared to FlexShares iBoxx 5-Year Target Duration TIPS Index Fund (TDTF) at 0.73%. This indicates that TIPZ'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.

Volatility by Period

	TIPZ	TDTF	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.96%	0.73%	+0.23%
Volatility (6M) Calculated over the trailing 6-month period	2.88%	1.97%	+0.91%
Volatility (1Y) Calculated over the trailing 1-year period	3.92%	3.06%	+0.86%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.37%	5.69%	+0.68%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.84%	5.07%	+0.77%

TIPZ vs. TDTF - Expense Ratio Comparison

TIPZ has a 0.20% expense ratio, which is higher than TDTF's 0.18% 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

TIPZ vs. TDTF - Dividend Comparison

TIPZ's dividend yield for the trailing twelve months is around 5.11%, more than TDTF's 4.71% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
TIPZ PIMCO Broad US TIPS Index ETF	5.11%	4.74%	4.44%	4.69%	7.14%	4.41%	1.47%	1.65%	2.23%	1.70%	1.06%	0.56%

Frequently Asked Questions

Can I hold both TIPZ and TDTF in my portfolio?

TIPZ and TDTF have a correlation of 0.87, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TIPZ or TDTF?

TIPZ has higher volatility (0.96%) compared to TDTF (0.73%). In terms of maximum drawdown, TIPZ dropped -15.77% vs TDTF's -12.02%.

Which ETF is better, TIPZ or TDTF?

On 10-year performance, TDTF leads with 2.93% vs 2.49% for TIPZ. On fees, TDTF is cheaper at 0.18% per year. 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.

Which ETF has performed better, TIPZ or TDTF?

Over the 10-year period, TDTF has performed better with a 2.93% return vs 2.49%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TIPZ or TDTF?

TDTF is cheaper with a 0.18% expense ratio, compared with 0.20% for TIPZ.

Which ETF pays a higher dividend yield, TIPZ or TDTF?

TIPZ has the higher dividend yield at 5.11%, compared with 4.71% for TDTF.

What is the main difference between TIPZ and TDTF?

TIPZ tracks ICE BofA US Inflation-Linked Treasury, while TDTF tracks iBoxx 5-Year Target Duration TIPS. They also come from different issuers: PIMCO and Northern Trust. Their fees differ too: 0.20% for TIPZ and 0.18% for TDTF.

Which has better risk-adjusted returns?

TDTF currently has the higher Sharpe Ratio (1.67 vs 1.31), 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.