XLE vs. TIP
XLE (State Street Energy Select Sector SPDR ETF) and TIP (iShares TIPS Bond ETF) are both exchange-traded funds - XLE is a Energy Equities fund tracking the Energy Select Sector 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 10 years, XLE returned 9.91%/yr vs 2.53%/yr for TIP. At a correlation of -0.05, they often move in opposite directions. XLE charges 0.08%/yr vs 0.18%/yr for TIP.
Performance
XLE vs. TIP - Performance Comparison
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Returns By Period
In the year-to-date period, XLE achieves a 29.56% return, which is significantly higher than TIP's 1.40% return. Over the past 10 years, XLE has outperformed TIP with an annualized return of 9.91%, while TIP has yielded a comparatively lower 2.53% annualized return.
XLE
- 1D
- 0.75%
- 1M
- -3.18%
- YTD
- 29.56%
- 6M
- 28.37%
- 1Y
- 34.84%
- 3Y*
- 16.18%
- 5Y*
- 20.12%
- 10Y*
- 9.91%
TIP
- 1D
- 0.01%
- 1M
- 0.25%
- YTD
- 1.40%
- 6M
- 1.42%
- 1Y
- 4.76%
- 3Y*
- 4.00%
- 5Y*
- 0.91%
- 10Y*
- 2.53%
XLE vs. TIP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XLE State Street Energy Select Sector SPDR ETF | 29.56% | 7.88% | 5.56% | -0.63% | 64.32% | 53.28% | -32.67% | 11.74% | -18.22% | -0.89% |
TIP iShares TIPS Bond ETF | 1.40% | 6.77% | 1.65% | 3.80% | -12.26% | 5.68% | 10.84% | 8.35% | -1.42% | 2.92% |
Correlation
The correlation between XLE and TIP is -0.10, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | -0.10 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.02 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.05 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.02 |
Correlation (All Time) Calculated using the full available price history since Dec 5, 2003 | -0.05 |
The correlation between XLE and TIP shifts across timeframes, from -0.10 (1 year) to 0.05 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
XLE vs. TIP — Risk / Return Rank
XLE
TIP
XLE vs. TIP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for State Street Energy Select Sector SPDR ETF (XLE) 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.
| XLE | TIP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.45 | ||
| Sortino ratioReturn per unit of downside risk | +0.29 | ||
| Omega ratioGain probability vs. loss probability | 1.30 | 1.24 | +0.05 |
| Calmar ratioReturn relative to maximum drawdown | 3.10 | 2.34 | +0.76 |
| Martin ratioReturn relative to average drawdown | 8.63 | 7.00 | +1.63 |
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Drawdowns
XLE vs. TIP - Drawdown Comparison
The maximum XLE drawdown since its inception was -71.26%, which is greater than TIP's maximum drawdown of -14.57%. Use the drawdown chart below to compare losses from any high point for XLE and TIP.
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Drawdown Indicators
| XLE | TIP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -71.26% | -14.57% | -56.69% |
Max Drawdown (1Y)Largest decline over 1 year | -12.05% | -1.98% | -10.07% |
Max Drawdown (3Y)Largest decline over 3 years | -20.14% | -4.54% | -15.60% |
Max Drawdown (5Y)Largest decline over 5 years | -26.04% | -14.51% | -11.53% |
Max Drawdown (10Y)Largest decline over 10 years | -66.81% | -14.51% | -52.30% |
Current DrawdownCurrent decline from peak | -8.01% | -0.46% | -7.55% |
Average DrawdownAverage peak-to-trough decline | -17.97% | -3.43% | -14.54% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.32% | 0.66% | +3.66% |
Volatility
XLE vs. TIP - Volatility Comparison
State Street Energy Select Sector SPDR ETF (XLE) has a higher volatility of 7.26% compared to iShares TIPS Bond ETF (TIP) at 1.03%. This indicates that XLE'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
| XLE | TIP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.26% | 1.03% | +6.23% |
Volatility (6M)Calculated over the trailing 6-month period | 16.79% | 2.32% | +14.47% |
Volatility (1Y)Calculated over the trailing 1-year period | 20.57% | 3.39% | +17.18% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 26.05% | 6.21% | +19.84% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 29.58% | 5.74% | +23.84% |
XLE vs. TIP - Expense Ratio Comparison
XLE has a 0.08% 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
XLE vs. TIP - Dividend Comparison
XLE's dividend yield for the trailing twelve months is around 2.59%, less 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% |
XLE State Street Energy Select Sector SPDR ETF | 2.59% | 3.28% | 3.36% | 3.55% | 3.68% | 4.21% | 5.62% | 6.72% | 3.54% | 3.03% | 2.26% | 3.39% |
Frequently Asked Questions
XLE and TIP have a correlation of -0.10, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XLE has higher volatility (7.26%) compared to TIP (1.03%). In terms of maximum drawdown, XLE dropped -71.26% vs TIP's -14.57%.
On 10-year performance, XLE leads with 9.91% vs 2.53% for TIP. On fees, XLE is cheaper at 0.08% 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 10-year period, XLE has performed better with a 9.91% return vs 2.53%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XLE is cheaper with a 0.08% expense ratio, compared with 0.18% for TIP.
TIP has the higher dividend yield at 3.76%, compared with 2.59% for XLE.
XLE is categorized as Energy Equities, while TIP is Inflation-Protected Bonds. XLE tracks Energy Select Sector Index, while TIP tracks ICE U.S. Treasury Inflation Linked Bond Index. They also come from different issuers: State Street and iShares. Their fees differ too: 0.08% for XLE and 0.18% for TIP.
XLE currently has the higher Sharpe Ratio (1.82 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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