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TLT vs. TIP
Performance
Return for Risk
Drawdowns
Volatility
Dividends

TLT vs. TIP

Last updated Jun 4, 2026

TLT (iShares 20+ Year Treasury Bond ETF) and TIP (iShares TIPS Bond ETF) are both exchange-traded funds - TLT is a Government Bonds fund tracking the ICE U.S. Treasury 20+ Year Bond Index, while TIP is a Inflation-Protected Bonds fund tracking the Barclays Capital U.S. Treasury Inflation Protected Securities (TIPS) Index (Series-L). Both are passively managed. Over the past 10 years, TLT returned -1.66%/yr vs 2.57%/yr for TIP. A 0.74 correlation means they provide meaningful diversification when combined. TLT charges 0.15%/yr vs 0.19%/yr for TIP.

Performance

TLT vs. TIP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares 20+ Year Treasury Bond ETF (TLT) and iShares TIPS Bond ETF (TIP). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, TLT achieves a -0.27% return, which is significantly lower than TIP's 1.54% return. Over the past 10 years, TLT has underperformed TIP with an annualized return of -1.66%, while TIP has yielded a comparatively higher 2.57% annualized return.

TLT

1D
-0.40%
1M
0.81%
YTD
-0.27%
6M
-2.02%
1Y
4.93%
3Y*
-1.80%
5Y*
-6.31%
10Y*
-1.66%

TIP

1D
-0.18%
1M
-0.09%
YTD
1.54%
6M
1.06%
1Y
4.96%
3Y*
3.88%
5Y*
0.97%
10Y*
2.57%
*Multi-year figures are annualized to reflect compound growth (CAGR)

TLT vs. TIP - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
TLT
iShares 20+ Year Treasury Bond ETF		-0.27%4.25%-8.05%2.77%-31.23%-4.60%18.15%14.12%-1.61%9.18%
TIP
iShares TIPS Bond ETF		1.54%6.77%1.65%3.80%-12.26%5.68%10.84%8.35%-1.42%2.92%

Correlation

The correlation between TLT and TIP is 0.81, 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

0.81

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

0.85

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

0.75

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

0.75

Correlation (All Time)
Calculated using the full available price history since Dec 8, 2003

0.74

The correlation between TLT and TIP shifts across timeframes, from 0.74 (all time) to 0.85 (3 years), reflecting how their relationship changes across market environments.

Compare stocks, funds, or ETFs

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iShares 20+ Year Treasury Bond ETF

iShares TIPS Bond ETF

Often compared with TLT:
TLT vs. SPYTLT vs. IEFTLT vs. TMFTLT vs. BNDTLT vs. VGLTTLT vs. TLTWTLT vs. EDV
Often compared with TIP:
TIP vs. SCHPTIP vs. VTIPTIP vs. SGOVTIP vs. STIPTIP vs. FIPDXTIP vs. BNDTIP vs. IEF

Return for Risk

TLT vs. TIP — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
TLT
TLT Risk / Return Rank: 1616
Overall Rank
TLT Sharpe Ratio Rank: 1616
Sharpe Ratio Rank
TLT Sortino Ratio Rank: 1515
Sortino Ratio Rank
TLT Omega Ratio Rank: 1515
Omega Ratio Rank
TLT Calmar Ratio Rank: 1717
Calmar Ratio Rank
TLT Martin Ratio Rank: 1616
Martin Ratio Rank
TIP
TIP Risk / Return Rank: 4444
Overall Rank
TIP Sharpe Ratio Rank: 4040
Sharpe Ratio Rank
TIP Sortino Ratio Rank: 4444
Sortino Ratio Rank
TIP Omega Ratio Rank: 3939
Omega Ratio Rank
TIP Calmar Ratio Rank: 5050
Calmar Ratio Rank
TIP Martin Ratio Rank: 4545
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.

TLT vs. TIP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares 20+ Year Treasury Bond ETF (TLT) and iShares TIPS Bond ETF (TIP). 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.

TLTTIPDifference
Sharpe ratioReturn per unit of total volatility
0.51
1.46

-0.95

Sortino ratioReturn per unit of downside risk
0.80
2.24

-1.44

Omega ratioGain probability vs. loss probability

1.09

1.26

-0.17

Calmar ratioReturn relative to maximum drawdown

0.65

2.52

-1.87

Martin ratioReturn relative to average drawdown

1.63

7.57

-5.95

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TLT vs. TIP - Sharpe Ratio Comparison

The current TLT Sharpe Ratio is 0.51, which is lower than the TIP Sharpe Ratio of 1.46. The chart below compares the historical Sharpe Ratios of TLT and TIP, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

TLTTIPDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

0.51

1.46

-0.95

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

-0.40

0.16

-0.56

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

-0.11

0.45

-0.56

Sharpe Ratio (All Time)

Calculated using the full available price history

0.26

0.57

-0.32

Drawdowns

TLT vs. TIP - Drawdown Comparison

The maximum TLT drawdown since its inception was -48.35%, which is greater than TIP's maximum drawdown of -14.57%. Use the drawdown chart below to compare losses from any high point for TLT and TIP.

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Drawdown Indicators

TLTTIPDifference

Max Drawdown

Largest peak-to-trough decline

-48.35%

-14.57%

-33.78%

Max Drawdown (1Y)

Largest decline over 1 year

-7.58%

-1.98%

-5.60%

Max Drawdown (3Y)

Largest decline over 3 years

-19.18%

-4.54%

-14.64%

Max Drawdown (5Y)

Largest decline over 5 years

-43.70%

-14.51%

-29.19%

Max Drawdown (10Y)

Largest decline over 10 years

-48.35%

-14.51%

-33.84%

Current Drawdown

Current decline from peak

-40.44%

-0.32%

-40.12%

Average Drawdown

Average peak-to-trough decline

-13.82%

-3.43%

-10.39%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.04%

0.66%

+2.38%

Volatility

TLT vs. TIP - Volatility Comparison

iShares 20+ Year Treasury Bond ETF (TLT) has a higher volatility of 2.76% compared to iShares TIPS Bond ETF (TIP) at 0.89%. This indicates that TLT's price experiences larger fluctuations and is considered to be riskier than TIP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

TLTTIPDifference

Volatility (1M)

Calculated over the trailing 1-month period

2.76%

0.89%

+1.87%

Volatility (6M)

Calculated over the trailing 6-month period

6.50%

2.29%

+4.21%

Volatility (1Y)

Calculated over the trailing 1-year period

9.77%

3.41%

+6.36%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

15.87%

6.21%

+9.66%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

14.91%

5.74%

+9.17%

TLT vs. TIP - Expense Ratio Comparison

TLT has a 0.15% expense ratio, which is lower than TIP's 0.19% 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%.

Dividends

TLT vs. TIP - Dividend Comparison

TLT's dividend yield for the trailing twelve months is around 4.59%, more than TIP's 3.76% yield.

PositionTTM20252024202320222021202020192018201720162015
TIP
iShares TIPS Bond ETF		3.76%3.46%2.52%2.73%6.96%4.28%1.17%1.75%2.71%2.07%1.48%0.34%
TLT
iShares 20+ Year Treasury Bond ETF		4.59%4.43%4.30%3.38%2.67%1.50%1.50%2.27%2.63%2.43%2.60%2.61%

Frequently Asked Questions

TLT and TIP have a correlation of 0.81, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

TLT has higher volatility (2.76%) compared to TIP (0.89%). In terms of maximum drawdown, TLT dropped -48.35% vs TIP's -14.57%.

On 10-year performance, TIP leads with 2.57% vs -1.66% for TLT. On fees, TLT is cheaper at 0.15% per year. On volatility, TIP has been the lower-risk option at 0.89%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, TIP has performed better with a 2.57% return vs -1.66%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

TLT is cheaper with a 0.15% expense ratio, compared with 0.19% for TIP.

TLT has the higher dividend yield at 4.59%, compared with 3.76% for TIP.

TLT is categorized as Government Bonds, while TIP is Inflation-Protected Bonds. TLT tracks ICE U.S. Treasury 20+ Year Bond Index, while TIP tracks Barclays Capital U.S. Treasury Inflation Protected Securities (TIPS) Index (Series-L). Their fees differ too: 0.15% for TLT and 0.19% for TIP.

TIP currently has the higher Sharpe Ratio (1.46 vs 0.51), 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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