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ETF Comparisons

TIP vs. BND

iShares TIPS Bond ETF

TIP
$--
vs

Vanguard Total Bond Market ETF

BND
$--

Correlation

0.86

Compare with

Top 10 comparisons with TIP:
Compare:
TIP
Correlation
With:
BND
Vanguard Total Bond Market ETF
0.86
SwitchSCHPSchwab Strategic Trust - Schwab U.S. Tips ETF0.99DFIPDimensional ETF Trust - Dimensional Inflation-Protected Securities ETF0.99SPIPSPDR Series Trust - SPDR Portfolio TIPS ETF0.97TDTFFlexShares Trust - FlexShares iBoxx 5-Year Target Duration TIPS Index Fund0.97TIPXSPDR Series Trust - SPDR Bloomberg 1-10 Year TIPS ETF0.97TDTTFlexShares Trust - FlexShares iBoxx 3-Year Target Duration TIPS Index Fund0.94LTPZPimco Exchange Traded Fund - PIMCO 15+ Year U.S. TIPS Index Exchange-Traded Fund0.93STPZPimco Exchange Traded Fund - PIMCO 1-5 Year U.S. TIPS Index Exchange-Traded Fund0.92STIPBlackRock Institutional Trust Company N.A. - iShares 0-5 Year TIPS Bond ETF0.92VTIPVanguard Malvern Funds - Vanguard Short-Term Inflation-Protected Securities Index Fund0.92

Top 10 shared holdings

Invest with TIP
Learn more about BND
TIPiShares TIPS Bond ETF
BNDVanguard Total Bond Market ETF

What is TIP?

The Fund seeks to track the investment results of the ICE U.S. Treasury Inflation Linked Bond Index (the "Underlying Index"), which tracks the performance of inflation-protected public obligations of the U.S. Treasury, commonly known as "TIPS," that have a remaining maturity of more than one year. TIPS are securities issued by the U.S. Treasury that are designed to provide inflation protection to investors. TIPS are income generating instruments whose interest and principal payments are adjusted for inflation a sustained increase in prices that erodes the purchasing power of money.

Snapshot
**

TIP iShares TIPS Bond ETF
BND Vanguard Total Bond Market ETF
Inception date
Dec 04 2003
Apr 03 2007
Expense ratio
0.19%
0.03%
TIP has a higher expense ratio than BND by 0.16%. This can indicate that it’s more expensive to invest in TIP than BND.
Type
US Bonds
US Bonds
TIP targets investing in US Bonds, while BND targets investing in US Bonds.
Fund owner
Blackrock (iShares)
Vanguard
TIP is managed by Blackrock (iShares), while BND is managed by Vanguard.
Volume (1m avg. daily)
$275,002,281
$433,296,798
Both TIP and BND are considered high-volume assets. They’re less likely to be affected by issues like slippage and failed orders on Composer than low-volume assets.
AUM
$21,035,302,259
$94,675,540,467
TIP has more assets under management than BND by $73,640,238,208. Higher AUM can be associated with better liquidity and lower slippage in trading.
Associated index
ICE US Treasury Inflation Linked Bond Index
Bloomberg U.S. Aggregate Float Adjusted Index
TIP is based off of the ICE US Treasury Inflation Linked Bond Index, while BND is based off of the Bloomberg U.S. Aggregate Float Adjusted Index
Inverse/Leveraged
No
No
TIP and BND use the same leverage ratio. Inverse and leveraged ETFs can be used to either take an opposite position or amplify returns of a given index.
Passive/Active
Passive
Passive
TIP and BND both use a Passive investing strategy. In an actively managed fund, the fund manager makes decisions about how funds are invested. A passively managed fund typically tries to track or follow a market index.
Dividend
No
No
TIP and BND may offer dividends. The frequency and yield of the dividend may not be the same.
Prospectus
View
View
Neither TIP nor BND require a K1.
TIP and BND’s Correlation
When ETFs are correlated, there are 3 main topics to analyze that will help you build your automated trading strategy: liquidity, expense, and risk.
  • Liquidity: In an active trading strategy (trading multiple time per week), it’s important to consider the liquidity of the ETF you’re using. Lower liquidity can mean more money lost in slippage. AUM and average daily volume are both indicators of liquidity.
  • Expense: Some ETFs are more expensive to use than others. For strategies that are focused on longer holding periods, it’s important to factor in how expensive it is to hold this ETF. Expense ratio is the main indicator of how expensive an ETF is.
  • Risk: Some ETFs will be highly correlated, but have varying degrees of returns, due to leverage. It’s important to consider if an ETF is using leverage or not. The main indicators of a riskier ETF will be the use of leverage and higher standard deviation or max drawdown in a backtest.

Automated Strategies
Related toTIP

#ROT

Ride the Oil Trend

Category

Featured, Diversification

Risk Rating

Aggressive

Automated Strategies
Related toBND

#PTAC

Pick the Trending Asset Class

Category

Momentum, Tactical Asset Allocation, Be Risk Aware, Ride the Momentum

Risk Rating

Moderate

Create your own algorithmic
trading strategy

Disclaimers

*

We show information directly obtained from our data provider, Xignite. Data shown here is provided by Xignite, an unaffiliated third party. Composer believes the information shown here is reliable, but has not been verified and there is no guarantee that the information is accurate.

**

We show information based on calculations performed by Composer using data from our provider. Information provided here is based on calculations performed by Composer using data sourced from Xignite, an unaffiliated third party. Composer believes this information is reliable, but has not verified the data and there is no guarantee that the calculations are accurate.