DFIP vs TIP
Dimensional Inflation-Protected Securities ETF vs iShares TIPS Bond ETF
Which is better, DFIP or TIP?
Nearly the same fund. DFIP costs less.
DFIP has a lower expense ratio. DFIP led over 3Y and the full window, TIP over 1Y and 5Y. The two have moved almost in lockstep, correlation 1.00.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | DFIP | TIP |
|---|---|---|
| Expense Ratio | 0.11%Best | 0.18% |
| AUM | $1.1B | $14.3B |
| Dividend Yield | 5.56% | 4.71% |
| Holdings | 46 | 51 |
| YTD Return | -1.67% | -1.33%Best |
| 1Y Return | -2.41% | -2.02%Best |
| 3Y Return (annualized) | +4.13%Best | +3.89% |
| 5Y Return (annualized) | -0.41% | -0.27%Best |
| Volatility (annualized) | 6.8% | 6.1%Best |
| Max Drawdown | -15.0% | -14.5%Best |
| $10,000 over 5 years | $9,797 | $9,866Best |
| Fund Family | Dimensional | iShares by BlackRock (US) |
| Category | Fixed Income | Fixed Income |
| Style | Inflation Protection | Inflation Protection |
| Inception | Nov 15, 2021 | Dec 4, 2003 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2021 to Oct 14, 2026 (4.9 years).
DFIP vs TIP growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 4.9 years both funds cover.
DFIP vs TIP Performance
Dimensional Inflation-Protected Securities ETF (DFIP) is an ETF from Dimensional and iShares TIPS Bond ETF (TIP) is an ETF from iShares by BlackRock (US). Over the past year DFIP returned -2.41% while TIP returned -2.02%. Year to date, DFIP is down 1.67% versus a loss of 1.33% for TIP.
Over three years, DFIP compounded at +4.13% per year against +3.89% for TIP; over five years the annualized figures are -0.41% and -0.27% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DFIP has been the more volatile fund, with annualized monthly volatility of 6.8% compared with 6.1% for TIP. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -15.0% for DFIP and -14.5% for TIP. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 1.00. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
DFIP charges 0.11% per year while TIP charges 0.18%. On a $10,000 position that is $11 vs $18 annually, a gap of $7 per year that compounds over a long holding period. On income, DFIP currently yields 5.56% against 4.71% for TIP.
Holdings Overlap
At least 99.1% of DFIP's money is in holdings TIP also owns.
Stated as a floor: for TIP, our book for it covers 81.9% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
Most of DFIP is already inside TIP. Owning both mostly buys the same companies twice.
20 positions in common, counted across the 21 positions we hold weights for in DFIP and 43 in TIP, against full books of 46 and 51.
Top Shared Holdings
| Stock | Weight in DFIP | Weight in TIP | Difference |
|---|---|---|---|
| TII 0.125 01/15/31Government Of United States Of America Inflation Index Linked 0.125% January 15, 2031 | 10.97% | 2.90% | 8.07% |
| TII 0.125 07/15/31U.S. Tips 0-1/8% 07/15/31 | 10.92% | 2.95% | 7.97% |
| TII 0.125 07/15/30Us Treasury Inflation Indexed Bonds 0.125% Jul 15 30 | 11.02% | 2.81% | 8.21% |
| TII 0.125 01/15/30Tsy Infl Ix N/b 01/30 0.125 | 10.58% | 2.62% | 7.96% |
| TII 0.125 01/15/32United States Treasury Inflation Indexed Bonds | 9.65% | 3.13% | 6.52% |
| TII 3.375 04/15/32United States Treasury Inflation Indexed Bonds 3.375 04/15/2032 | 10.08% | 0.53% | 9.55% |
| TII 0.25 07/15/29Tsy Infl Ix N/B 07/29 0.25 | 6.13% | 2.37% | 3.76% |
| TII 1.75 01/15/34United States Treasury Inflation Indexed Bonds, 1.7500% 01/15/2034 | 2.86% | 3.44% | 0.58% |
| TII 2.125 02/15/41Tsy Infl Ix N/b 02/41 2.125 | 4.83% | 0.84% | 3.99% |
| TII 2.125 01/15/35United States Of America Notes Fixed 2.125% 2.125% 01/15/2035 | 1.53% | 3.99% | 2.46% |
99.1% of DFIP is already inside TIP.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, DFIP or TIP?
DFIP has an expense ratio of 0.11% while TIP charges 0.18%. DFIP is the cheaper option, by $7 a year on a $10,000 investment.
Which performed better, DFIP or TIP?
Over the past year DFIP returned -2.41% vs -2.02% for TIP, so TIP leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, DFIP or TIP?
DFIP has been the more volatile fund at 6.8% annualized versus 6.1% for TIP. Worst drawdown: DFIP -15.0% vs TIP -14.5%.
Should I hold both DFIP and TIP?
DFIP and TIP have a monthly-return correlation of 1.00, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between DFIP and TIP?
At least 99.1% of DFIP's money is in holdings TIP also owns. Our book for TIP is partial, so the real figure is this or higher. They hold 20 positions in common, counted across the 21 positions we hold weights for in DFIP and 43 in TIP.
Which pays a higher dividend, DFIP or TIP?
DFIP yields 5.56% while TIP yields 4.71%, so DFIP currently pays the higher dividend yield.
Is TIP better than DFIP?
DFIP has a lower expense ratio. DFIP led over 3Y and the full window, TIP over 1Y and 5Y. The two have moved almost in lockstep, correlation 1.00. Which one suits a particular account depends on what it is for. This is information, not a recommendation.