TIP: iShares TIPS Bond ETF returns, drawdowns and risk
Funds on government bonds whose principal rises with inflation (TIPS in the US, linkers in Europe).
Data updated October 2026
TIP · US exchange · USDCategory: Inflation-linked bond ETFsData from October 2006
From October 2006 to October 2026 TIP returned 3.3% a year on average with dividends reinvested, in US dollars: $10,000 invested at the start grew to $19,212.
Its deepest fall was 14.6%, from March 2008 to November 2008, and it took about 19 months to get back to the previous high. Annual volatility was 6.2%; at the last close it was 2.5% below its high.
Against AGG (iShares Core U.S. Aggregate Bond ETF), over the 240 months both have data, the correlation of monthly returns was 0.78: they usually moved together. Beta was 0.98. In months when AGG rose, TIP moved 106% as much on average; in months when AGG fell, 100% as much.
Key figures
- Annual return (CAGR)
- +3.3%
- 1-year return
- −1.6%
- 5 years, a year
- −0.1%
- 10 years, a year
- +2.1%
- Annual volatility
- 6.2%
- Maximum drawdown
- −14.6%
- Sharpe ratio
- 0.30
- Worst year
- 2022: −12.3%
Trailing returns
| Period | TIP | AGG |
|---|---|---|
| 1 year | −1.6% | −1.9% |
| 3 years, a year | +4.3% | +5.2% |
| 5 years, a year | −0.1% | −0.3% |
| 10 years, a year | +2.1% | +1.2% |
To the last close of October 2026. Periods longer than a year are annualised.
Growth of $10,000: TIP vs AGG
Month-end values from November 2006, the first month both funds have data.
TIP drawdowns
Percentage below the previous high, weekly.
Returns by calendar year
| Year | TIP | AGG |
|---|---|---|
| 2026(partial) | −0.7% | −1.8% |
| 2025 | +6.8% | +7.2% |
| 2024 | +1.7% | +1.3% |
| 2023 | +3.8% | +5.7% |
| 2022 | −12.3% | −13.0% |
| 2021 | +5.7% | −1.8% |
| 2020 | +10.9% | +7.5% |
| 2019 | +8.3% | +8.5% |
| 2018 | −1.4% | +0.1% |
| 2017 | +2.9% | +3.5% |
| 2016 | +4.7% | +2.4% |
| 2015 | −1.8% | +0.5% |
| 2014 | +3.6% | +6.0% |
| 2013 | −8.5% | −2.0% |
| 2012 | +6.4% | +3.8% |
| 2011 | +13.3% | +7.7% |
| 2010 | +6.1% | +6.4% |
| 2009 | +8.9% | +3.0% |
| 2008 | −0.5% | +7.9% |
| 2007 | +11.9% | +6.6% |
| 2006(partial) | +0.4% | — |
TIP compared
How the figures are calculated
Total return in the fund’s trading currency, from end-of-day prices with dividends reinvested on the ex-date. The fund’s own ongoing charges are already reflected in its price; trading costs, taxes and currency conversion are not included. Past returns do not predict future returns.
Sharpe ratio uses the return of short-term government bills in the same currency as the risk-free rate. The growth chart uses month-end values; drawdowns and volatility use daily closes.
Questions
What is the average annual return of TIP?
From October 2006 to October 2026 TIP returned 3.3% a year on average (CAGR) with dividends reinvested, in USD. Over the last 5 years: −0.1% a year. Over the last 12 months: −1.6%.
What was the worst drawdown of TIP?
14.6%, from March 2008 to November 2008; it took about 19 months from the previous high to get back to it.
How volatile is TIP?
Annual volatility was 6.2% over the period. Its worst month was −8.1% and 62% of months were positive. Worst calendar year: 2022 (−12.3%).
How closely does TIP follow AGG?
Over 240 months the correlation of monthly returns was 0.78, so they usually moved together, with a beta of 0.98.
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Other Inflation-linked bond ETFs
Source: MarketStack end-of-day prices, total return with dividends reinvested. Figures are historical and descriptive; they are not forecasts and not investment advice. MEDGE Capital does not recommend buying or selling any instrument. Risk disclaimer.