BIV vs. VTIP
Compare and contrast key facts about Vanguard Intermediate-Term Bond ETF (BIV) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP).
BIV and VTIP are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. BIV is a passively managed fund by Vanguard that tracks the performance of the Barclays U.S. 5. It was launched on Apr 3, 2007. VTIP is a passively managed fund by Vanguard that tracks the performance of the Barclays Capital U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Years Index (Series-L). It was launched on Oct 12, 2012. Both BIV and VTIP are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: BIV or VTIP.
Key characteristics
BIV | VTIP | |
---|---|---|
YTD Return | -0.71% | 0.88% |
1Y Return | 2.30% | 4.09% |
3Y Return (Ann) | -2.37% | 2.33% |
5Y Return (Ann) | 0.80% | 3.29% |
10Y Return (Ann) | 1.97% | 2.06% |
Sharpe Ratio | 0.32 | 1.59 |
Daily Std Dev | 7.05% | 2.59% |
Max Drawdown | -18.95% | -6.27% |
Current Drawdown | -10.85% | 0.00% |
Correlation
The correlation between BIV and VTIP is 0.56, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
BIV vs. VTIP - Performance Comparison
In the year-to-date period, BIV achieves a -0.71% return, which is significantly lower than VTIP's 0.88% return. Both investments have delivered pretty close results over the past 10 years, with BIV having a 1.97% annualized return and VTIP not far ahead at 2.06%. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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BIV vs. VTIP - Expense Ratio Comparison
Risk-Adjusted Performance
BIV vs. VTIP - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Intermediate-Term Bond ETF (BIV) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP). 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.
Sharpe ratio | Sortino ratio | Omega ratio | Calmar ratio | Ulcer Index | |
---|---|---|---|---|---|
Vanguard Intermediate-Term Bond ETF | 0.32 | ||||
Vanguard Short-Term Inflation-Protected Securities ETF | 1.58 |
Dividends
BIV vs. VTIP - Dividend Comparison
BIV's dividend yield for the trailing twelve months is around 3.26%, less than VTIP's 3.33% yield.
TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
---|---|---|---|---|---|---|---|---|---|---|---|---|
Vanguard Intermediate-Term Bond ETF | 3.26% | 3.09% | 2.41% | 3.42% | 2.95% | 2.75% | 2.88% | 2.69% | 2.38% | 3.02% | 3.96% | 4.22% |
Vanguard Short-Term Inflation-Protected Securities ETF | 3.33% | 3.36% | 6.84% | 4.68% | 1.20% | 1.95% | 2.45% | 1.52% | 0.76% | 0.00% | 0.82% | 0.05% |
Drawdowns
BIV vs. VTIP - Drawdown Comparison
The maximum BIV drawdown since its inception was -18.95%, which is greater than VTIP's maximum drawdown of -6.27%. The drawdown chart below compares losses from any high point along the way for BIV and VTIP
Volatility
BIV vs. VTIP - Volatility Comparison
Vanguard Intermediate-Term Bond ETF (BIV) has a higher volatility of 1.26% compared to Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) at 0.46%. This indicates that BIV's price experiences larger fluctuations and is considered to be riskier than VTIP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.