FLOT vs. VTIP
FLOT (iShares Floating Rate Bond ETF) and VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) are both exchange-traded funds - FLOT is a Ultrashort Bond fund tracking the Bloomberg US Floating Rate Note < 5 Years Index, while VTIP is a Inflation-Protected Bonds fund tracking the Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index. Both are passively managed. Over the past 10 years, FLOT returned 3.04%/yr vs 3.09%/yr for VTIP. At a 0.06 correlation, their price movements are largely independent. FLOT charges 0.15%/yr vs 0.03%/yr for VTIP.
Performance
FLOT vs. VTIP - Performance Comparison
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Returns By Period
In the year-to-date period, FLOT achieves a 1.99% return, which is significantly higher than VTIP's 1.85% return. Both investments have delivered pretty close results over the past 10 years, with FLOT having a 3.04% annualized return and VTIP not far ahead at 3.09%.
FLOT
- 1D
- 0.02%
- 1M
- 0.43%
- YTD
- 1.99%
- 6M
- 2.23%
- 1Y
- 4.87%
- 3Y*
- 5.66%
- 5Y*
- 4.22%
- 10Y*
- 3.04%
VTIP
- 1D
- -0.04%
- 1M
- -0.06%
- YTD
- 1.85%
- 6M
- 1.95%
- 1Y
- 4.51%
- 3Y*
- 5.25%
- 5Y*
- 3.37%
- 10Y*
- 3.09%
FLOT vs. VTIP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FLOT iShares Floating Rate Bond ETF | 1.99% | 4.91% | 6.53% | 6.43% | 1.28% | 0.45% | 0.87% | 3.97% | 1.48% | 1.65% |
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 1.85% | 6.07% | 4.74% | 4.62% | -2.94% | 5.36% | 4.95% | 4.86% | 0.56% | 0.82% |
Correlation
The correlation between FLOT and VTIP is 0.07, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.07 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.11 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.09 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.07 |
Correlation (All Time) Calculated using the full available price history since Oct 16, 2012 | 0.06 |
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Return for Risk
FLOT vs. VTIP — Risk / Return Rank
FLOT
VTIP
FLOT vs. VTIP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Floating Rate Bond ETF (FLOT) 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| FLOT | VTIP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +3.49 | ||
| Sortino ratioReturn per unit of downside risk | +6.60 | ||
| Omega ratioGain probability vs. loss probability | 3.23 | 1.65 | +1.58 |
| Calmar ratioReturn relative to maximum drawdown | 11.32 | 6.57 | +4.75 |
| Martin ratioReturn relative to average drawdown | 105.27 | 25.36 | +79.91 |
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Drawdowns
FLOT vs. VTIP - Drawdown Comparison
The maximum FLOT drawdown since its inception was -13.54%, which is greater than VTIP's maximum drawdown of -6.27%. Use the drawdown chart below to compare losses from any high point for FLOT and VTIP.
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Drawdown Indicators
| FLOT | VTIP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -13.54% | -6.27% | -7.27% |
Max Drawdown (1Y)Largest decline over 1 year | -0.43% | -0.70% | +0.27% |
Max Drawdown (3Y)Largest decline over 3 years | -1.57% | -0.98% | -0.59% |
Max Drawdown (5Y)Largest decline over 5 years | -2.36% | -5.50% | +3.14% |
Max Drawdown (10Y)Largest decline over 10 years | -13.54% | -6.27% | -7.27% |
Current DrawdownCurrent decline from peak | 0.00% | -0.22% | +0.22% |
Average DrawdownAverage peak-to-trough decline | -0.21% | -1.04% | +0.83% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.05% | 0.18% | -0.13% |
Volatility
FLOT vs. VTIP - Volatility Comparison
The current volatility for iShares Floating Rate Bond ETF (FLOT) is 0.21%, while Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) has a volatility of 0.40%. This indicates that FLOT experiences smaller price fluctuations and is considered to be less risky than VTIP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FLOT | VTIP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.21% | 0.40% | -0.19% |
Volatility (6M)Calculated over the trailing 6-month period | 0.63% | 1.04% | -0.41% |
Volatility (1Y)Calculated over the trailing 1-year period | 0.75% | 1.50% | -0.75% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.77% | 2.77% | -1.00% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.15% | 2.74% | +1.41% |
FLOT vs. VTIP - Expense Ratio Comparison
FLOT has a 0.15% expense ratio, which is higher than VTIP's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
FLOT vs. VTIP - Dividend Comparison
FLOT's dividend yield for the trailing twelve months is around 4.53%, more than VTIP's 3.59% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FLOT iShares Floating Rate Bond ETF | 4.53% | 4.84% | 5.82% | 5.66% | 2.06% | 0.43% | 1.25% | 2.78% | 2.41% | 1.46% | 0.97% | 0.53% |
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 3.59% | 3.81% | 2.70% | 2.86% | 6.84% | 4.68% | 1.20% | 1.95% | 2.45% | 1.52% | 0.76% | 0.00% |
Frequently Asked Questions
FLOT and VTIP have a correlation of 0.07, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VTIP has higher volatility (0.40%) compared to FLOT (0.21%). In terms of maximum drawdown, FLOT dropped -13.54% vs VTIP's -6.27%.
On 10-year performance, VTIP leads with 3.09% vs 3.04% for FLOT. On fees, VTIP is cheaper at 0.03% per year. On volatility, FLOT has been the lower-risk option at 0.21%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VTIP has performed better with a 3.09% return vs 3.04%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VTIP is cheaper with a 0.03% expense ratio, compared with 0.15% for FLOT.
FLOT has the higher dividend yield at 4.53%, compared with 3.59% for VTIP.
FLOT is categorized as Ultrashort Bond, while VTIP is Inflation-Protected Bonds. FLOT tracks Bloomberg US Floating Rate Note < 5 Years Index, while VTIP tracks Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.15% for FLOT and 0.03% for VTIP.
FLOT currently has the higher Sharpe Ratio (6.56 vs 3.07), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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