FSTZX vs. VTIP

Last updated Jun 23, 2026

FSTZX (Fidelity Series 0-5 Year Inflation-Protected Bond Index Fund) and VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) are both Inflation-Protected Bonds funds. Over the past 3 years, FSTZX returned 5.09%/yr vs 5.00%/yr for VTIP. Their correlation of 0.89 suggests significant overlap in exposure. FSTZX charges 0.00%/yr vs 0.03%/yr for VTIP.

Performance

FSTZX vs. VTIP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity Series 0-5 Year Inflation-Protected Bond Index Fund (FSTZX) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FSTZX achieves a 1.48% return, which is significantly higher than VTIP's 1.34% return.

FSTZX

• 1D: 0.10%
• 1M: -0.10%
• YTD: 1.48%
• 6M: 1.59%
• 1Y: 3.73%
• 3Y*: 5.09%
• 5Y*: —
• 10Y*: —

VTIP

• 1D: -0.18%
• 1M: -0.24%
• YTD: 1.34%
• 6M: 1.46%
• 1Y: 3.64%
• 3Y*: 5.00%
• 5Y*: 3.26%
• 10Y*: 3.03%

*Multi-year figures are annualized to reflect compound growth (CAGR)

FSTZX vs. VTIP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
FSTZX Fidelity Series 0-5 Year Inflation-Protected Bond Index Fund	1.48%	5.99%	4.87%	4.67%	-2.83%	1.32%
VTIP Vanguard Short-Term Inflation-Protected Securities ETF	1.34%	6.07%	4.74%	4.62%	-2.94%	1.52%

Correlation

The correlation between FSTZX and VTIP is 0.83, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.83
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (All Time) Calculated using the full available price history since Aug 16, 2021	0.89

The correlation between FSTZX and VTIP has been stable across timeframes, ranging from 0.83 to 0.89 - a consistent structural relationship.

Return for Risk

FSTZX vs. VTIP — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

FSTZX

FSTZX Risk / Return Rank: 86
FSTZX Sharpe Ratio Rank: 74
FSTZX Sortino Ratio Rank: 81
FSTZX Omega Ratio Rank: 83
FSTZX Calmar Ratio Rank: 96
FSTZX Martin Ratio Rank: 95

VTIP

VTIP Risk / Return Rank: 84
VTIP Sharpe Ratio Rank: 75
VTIP Sortino Ratio Rank: 85
VTIP Omega Ratio Rank: 83
VTIP Calmar Ratio Rank: 89
VTIP Martin Ratio Rank: 88

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

FSTZX vs. VTIP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Series 0-5 Year Inflation-Protected Bond Index Fund (FSTZX) 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.

	FSTZX	VTIP	Difference
Sharpe ratio: Return per unit of total volatility	2.31	2.32	-0.01
Sortino ratio: Return per unit of downside risk	3.53	3.64	-0.11
Omega ratio: Gain probability vs. loss probability	1.50	1.47	+0.03
Calmar ratio: Return relative to maximum drawdown	5.63	5.12	+0.51
Martin ratio: Return relative to average drawdown	19.94	18.66	+1.28

FSTZX vs. VTIP - Sharpe Ratio Comparison

The current FSTZX Sharpe Ratio is 2.31, which is comparable to the VTIP Sharpe Ratio of 2.32. The chart below compares the historical Sharpe Ratios of FSTZX and VTIP, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

FSTZX vs. VTIP - Drawdown Comparison

The maximum FSTZX drawdown since its inception was -5.30%, smaller than the maximum VTIP drawdown of -6.27%. Use the drawdown chart below to compare losses from any high point for FSTZX and VTIP.

Drawdown Indicators

	FSTZX	VTIP	Difference
Max Drawdown Largest peak-to-trough decline	-5.30%	-6.27%	+0.97%
Max Drawdown (1Y) Largest decline over 1 year	-0.70%	-0.71%	+0.01%
Max Drawdown (3Y) Largest decline over 3 years	-1.03%	-0.98%	-0.05%
Max Drawdown (5Y) Largest decline over 5 years	—	-5.50%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-6.27%	—
Current Drawdown Current decline from peak	-0.60%	-0.71%	+0.11%
Average Drawdown Average peak-to-trough decline	-1.08%	-1.04%	-0.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.20%	0.20%	0.00%

Volatility

FSTZX vs. VTIP - Volatility Comparison

Fidelity Series 0-5 Year Inflation-Protected Bond Index Fund (FSTZX) has a higher volatility of 0.71% compared to Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) at 0.65%. This indicates that FSTZX'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.

Volatility by Period

	FSTZX	VTIP	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.71%	0.65%	+0.06%
Volatility (6M) Calculated over the trailing 6-month period	1.24%	1.17%	+0.07%
Volatility (1Y) Calculated over the trailing 1-year period	1.71%	1.58%	+0.13%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.79%	2.77%	+0.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.79%	2.74%	+0.05%

FSTZX vs. VTIP - Expense Ratio Comparison

FSTZX has a 0.00% expense ratio, which is lower than VTIP's 0.03% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

FSTZX vs. VTIP - Dividend Comparison

FSTZX's dividend yield for the trailing twelve months is around 3.66%, more than VTIP's 3.61% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
FSTZX Fidelity Series 0-5 Year Inflation-Protected Bond Index Fund	3.66%	4.02%	2.78%	2.54%	5.25%	0.82%	0.00%	0.00%	0.00%	0.00%	0.00%
VTIP Vanguard Short-Term Inflation-Protected Securities ETF	3.61%	3.81%	2.70%	2.86%	6.84%	4.68%	1.20%	1.95%	2.45%	1.52%	0.76%

Frequently Asked Questions

Can I hold both FSTZX and VTIP in my portfolio?

FSTZX and VTIP have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FSTZX or VTIP?

FSTZX has higher volatility (0.71%) compared to VTIP (0.65%). In terms of maximum drawdown, FSTZX dropped -5.30% vs VTIP's -6.27%.

Which has better risk-adjusted returns?

VTIP currently has the higher Sharpe Ratio (2.32 vs 2.31), 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.