USHY vs. TIP
USHY (iShares Broad USD High Yield Corporate Bond ETF) and TIP (iShares TIPS Bond ETF) are both exchange-traded funds - USHY is a High Yield Bonds fund tracking the ICE BofA US High Yield Constrained Index, while TIP is a Inflation-Protected Bonds fund tracking the ICE U.S. Treasury Inflation Linked Bond Index. Both are passively managed. Over the past 5 years, USHY returned 4.21%/yr vs 0.91%/yr for TIP. At a 0.29 correlation, their price movements are largely independent. USHY charges 0.15%/yr vs 0.18%/yr for TIP.
Performance
USHY vs. TIP - Performance Comparison
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Returns By Period
In the year-to-date period, USHY achieves a 1.75% return, which is significantly higher than TIP's 1.40% return.
USHY
- 1D
- 0.03%
- 1M
- 0.59%
- YTD
- 1.75%
- 6M
- 2.37%
- 1Y
- 6.90%
- 3Y*
- 8.94%
- 5Y*
- 4.21%
- 10Y*
- —
TIP
- 1D
- 0.01%
- 1M
- -0.21%
- YTD
- 1.40%
- 6M
- 1.42%
- 1Y
- 4.61%
- 3Y*
- 4.00%
- 5Y*
- 0.91%
- 10Y*
- 2.53%
USHY vs. TIP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
USHY iShares Broad USD High Yield Corporate Bond ETF | 1.75% | 8.81% | 8.45% | 12.73% | -11.18% | 5.02% | 6.17% | 14.24% | -2.41% | 0.16% |
TIP iShares TIPS Bond ETF | 1.40% | 6.77% | 1.65% | 3.80% | -12.26% | 5.68% | 10.84% | 8.35% | -1.42% | 1.61% |
Correlation
The correlation between USHY and TIP is 0.47, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.47 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.54 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.44 |
Correlation (All Time) Calculated using the full available price history since Oct 26, 2017 | 0.29 |
The correlation between USHY and TIP shifts across timeframes, from 0.29 (all time) to 0.54 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
USHY vs. TIP — Risk / Return Rank
USHY
TIP
USHY vs. TIP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Broad USD High Yield Corporate Bond ETF (USHY) 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| USHY | TIP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.51 | ||
| Sortino ratioReturn per unit of downside risk | +0.71 | ||
| Omega ratioGain probability vs. loss probability | 1.36 | 1.24 | +0.12 |
| Calmar ratioReturn relative to maximum drawdown | 2.85 | 2.34 | +0.51 |
| Martin ratioReturn relative to average drawdown | 12.77 | 7.00 | +5.77 |
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Drawdowns
USHY vs. TIP - Drawdown Comparison
The maximum USHY drawdown since its inception was -22.44%, which is greater than TIP's maximum drawdown of -14.57%. Use the drawdown chart below to compare losses from any high point for USHY and TIP.
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Drawdown Indicators
| USHY | TIP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -22.44% | -14.57% | -7.87% |
Max Drawdown (1Y)Largest decline over 1 year | -2.43% | -1.98% | -0.45% |
Max Drawdown (3Y)Largest decline over 3 years | -4.66% | -4.54% | -0.12% |
Max Drawdown (5Y)Largest decline over 5 years | -15.56% | -14.51% | -1.05% |
Max Drawdown (10Y)Largest decline over 10 years | — | -14.51% | — |
Current DrawdownCurrent decline from peak | 0.00% | -0.46% | +0.46% |
Average DrawdownAverage peak-to-trough decline | -2.66% | -3.43% | +0.77% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.54% | 0.66% | -0.12% |
Volatility
USHY vs. TIP - Volatility Comparison
iShares Broad USD High Yield Corporate Bond ETF (USHY) has a higher volatility of 1.20% compared to iShares TIPS Bond ETF (TIP) at 1.03%. This indicates that USHY'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
| USHY | TIP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.20% | 1.03% | +0.17% |
Volatility (6M)Calculated over the trailing 6-month period | 2.96% | 2.32% | +0.64% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.69% | 3.39% | +0.30% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.35% | 6.21% | +1.14% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.24% | 5.74% | +2.50% |
USHY vs. TIP - Expense Ratio Comparison
USHY has a 0.15% expense ratio, which is lower than TIP's 0.18% 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
USHY vs. TIP - Dividend Comparison
USHY's dividend yield for the trailing twelve months is around 6.90%, more than TIP's 3.76% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
USHY iShares Broad USD High Yield Corporate Bond ETF | 6.90% | 6.79% | 6.89% | 6.63% | 6.08% | 5.07% | 5.30% | 5.92% | 6.30% | 0.73% | 0.00% | 0.00% |
Frequently Asked Questions
USHY and TIP have a correlation of 0.47, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
USHY has higher volatility (1.20%) compared to TIP (1.03%). In terms of maximum drawdown, USHY dropped -22.44% vs TIP's -14.57%.
On 5-year performance, USHY leads with 4.21% vs 0.91% for TIP. On fees, USHY is cheaper at 0.15% per year. On volatility, TIP has been the lower-risk option at 1.03%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, USHY has performed better with a 4.21% return vs 0.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
USHY is cheaper with a 0.15% expense ratio, compared with 0.18% for TIP.
USHY has the higher dividend yield at 6.90%, compared with 3.76% for TIP.
USHY is categorized as High Yield Bonds, while TIP is Inflation-Protected Bonds. USHY tracks ICE BofA US High Yield Constrained Index, while TIP tracks ICE U.S. Treasury Inflation Linked Bond Index. Their fees differ too: 0.15% for USHY and 0.18% for TIP.
USHY currently has the higher Sharpe Ratio (1.88 vs 1.37), 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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