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TIP vs. IWM

iShares TIPS Bond ETF

TIP
$--
vs

iShares Russell 2000 ETF

IWM
$--

Correlation

0.23
TIPiShares TIPS Bond ETF
IWMiShares Russell 2000 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
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TIP iShares TIPS Bond ETF
IWM iShares Russell 2000 ETF
Inception date
Dec 04 2003
May 22 2000
Expense ratio
0.19%
0.19%
TIP and IWM have the same expense ratio, meaning it’s equally as costly to invest in either one.
Type
US Bonds
US Equities
TIP targets investing in US Bonds, while IWM targets investing in US Equities.
Fund owner
Blackrock (iShares)
Blackrock (iShares)
TIP is managed by Blackrock (iShares), while IWM is managed by Blackrock (iShares).
Volume (1m avg. daily)
$275,002,281
$4,463,198,665
Both TIP and IWM 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
$50,549,436,527
TIP has more assets under management than IWM by $29,514,134,268. Higher AUM can be associated with better liquidity and lower slippage in trading.
Associated index
ICE US Treasury Inflation Linked Bond Index
Russell 2000 Index
TIP is based off of the ICE US Treasury Inflation Linked Bond Index, while IWM is based off of the Russell 2000 Index
Inverse/Leveraged
No
No
TIP and IWM 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 IWM 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 IWM may offer dividends. The frequency and yield of the dividend may not be the same.
Prospectus
Neither TIP nor IWM require a K1.
When ETFs are uncorrelated, it’s common for them to be used as complements in a trading strategy. This means it makes sense to be holding both of them at the same time, or to use one as a hedge for the other.

Automated Strategies
Related toTIP

#ROT

Ride the Oil Trend

Category

Featured, Diversification

Risk Rating

Aggressive

Automated Strategies
Related toIWM

#BTD

Buy the Dips: Nasdaq 100

Category

Featured, Technology Focus

Risk Rating

Aggressive

Create your own algorithmic
trading strategy

Disclaimers

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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.

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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.