FTSD vs. VTIP
FTSD (Franklin Short Duration U.S. Government ETF) and VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) are both exchange-traded funds - FTSD is a Mortgage Backed Securities fund actively managed by Franklin Templeton, while VTIP is a Inflation-Protected Bonds fund tracking the Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index. FTSD is actively managed, while VTIP is passively managed. Over the past 10 years, FTSD returned 2.05%/yr vs 3.14%/yr for VTIP. At a 0.35 correlation, their price movements are largely independent. FTSD charges 0.25%/yr vs 0.03%/yr for VTIP.
Performance
FTSD vs. VTIP - Performance Comparison
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Returns By Period
In the year-to-date period, FTSD achieves a 0.80% return, which is significantly lower than VTIP's 2.05% return. Over the past 10 years, FTSD has underperformed VTIP with an annualized return of 2.05%, while VTIP has yielded a comparatively higher 3.14% annualized return.
FTSD
- 1D
- -0.12%
- 1M
- 0.17%
- YTD
- 0.80%
- 6M
- 1.30%
- 1Y
- 4.31%
- 3Y*
- 4.98%
- 5Y*
- 2.46%
- 10Y*
- 2.05%
VTIP
- 1D
- 0.00%
- 1M
- 0.04%
- YTD
- 2.05%
- 6M
- 2.03%
- 1Y
- 4.70%
- 3Y*
- 5.26%
- 5Y*
- 3.37%
- 10Y*
- 3.14%
FTSD vs. VTIP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FTSD Franklin Short Duration U.S. Government ETF | 0.80% | 5.66% | 5.20% | 4.84% | -3.13% | -0.90% | 3.13% | 2.40% | 1.64% | 0.63% |
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 2.05% | 6.07% | 4.74% | 4.62% | -2.94% | 5.36% | 4.95% | 4.86% | 0.56% | 0.82% |
Correlation
The correlation between FTSD and VTIP is 0.34, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.34 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.49 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.48 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.40 |
Correlation (All Time) Calculated using the full available price history since Nov 6, 2013 | 0.35 |
The correlation between FTSD and VTIP shifts across timeframes, from 0.34 (1 year) to 0.49 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
FTSD vs. VTIP — Risk / Return Rank
FTSD
VTIP
FTSD vs. VTIP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Franklin Short Duration U.S. Government ETF (FTSD) 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.
| FTSD | VTIP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.15 | ||
| Sortino ratioReturn per unit of downside risk | -0.09 | ||
| Omega ratioGain probability vs. loss probability | 1.69 | 1.67 | +0.02 |
| Calmar ratioReturn relative to maximum drawdown | 9.59 | 6.75 | +2.84 |
| Martin ratioReturn relative to average drawdown | 38.36 | 26.06 | +12.30 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| FTSD | VTIP | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 3.30 | 3.15 | +0.15 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 1.33 | 1.22 | +0.11 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 1.15 | 1.15 | 0.00 |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.04 | 0.89 | +0.15 |
Drawdowns
FTSD vs. VTIP - Drawdown Comparison
The maximum FTSD drawdown since its inception was -5.32%, smaller than the maximum VTIP drawdown of -6.27%. Use the drawdown chart below to compare losses from any high point for FTSD and VTIP.
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Drawdown Indicators
| FTSD | VTIP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.32% | -6.27% | +0.95% |
Max Drawdown (1Y)Largest decline over 1 year | -0.45% | -0.70% | +0.25% |
Max Drawdown (3Y)Largest decline over 3 years | -0.93% | -0.98% | +0.05% |
Max Drawdown (5Y)Largest decline over 5 years | -5.04% | -5.50% | +0.46% |
Max Drawdown (10Y)Largest decline over 10 years | -5.32% | -6.27% | +0.95% |
Current DrawdownCurrent decline from peak | -0.12% | -0.02% | -0.10% |
Average DrawdownAverage peak-to-trough decline | -0.60% | -1.04% | +0.44% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.11% | 0.18% | -0.07% |
Volatility
FTSD vs. VTIP - Volatility Comparison
Franklin Short Duration U.S. Government ETF (FTSD) has a higher volatility of 0.51% compared to Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) at 0.43%. This indicates that FTSD'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.
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Volatility by Period
| FTSD | VTIP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.51% | 0.43% | +0.08% |
Volatility (6M)Calculated over the trailing 6-month period | 1.03% | 1.02% | +0.01% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.31% | 1.50% | -0.19% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.85% | 2.77% | -0.92% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.79% | 2.74% | -0.95% |
FTSD vs. VTIP - Expense Ratio Comparison
FTSD has a 0.25% 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
FTSD vs. VTIP - Dividend Comparison
FTSD's dividend yield for the trailing twelve months is around 4.50%, more than VTIP's 3.58% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FTSD Franklin Short Duration U.S. Government ETF | 4.50% | 4.67% | 4.75% | 4.14% | 1.73% | 1.01% | 1.54% | 2.90% | 2.63% | 2.24% | 1.92% | 1.52% |
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 3.58% | 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
FTSD and VTIP have a correlation of 0.34, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FTSD has higher volatility (0.51%) compared to VTIP (0.43%). In terms of maximum drawdown, FTSD dropped -5.32% vs VTIP's -6.27%.
On 10-year performance, VTIP leads with 3.14% vs 2.05% for FTSD. On fees, VTIP is cheaper at 0.03% per year. Their volatility is very similar. 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 3.14% return vs 2.05%. 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 0.25% for FTSD.
FTSD has the higher dividend yield at 4.50%, compared with 3.58% for VTIP.
FTSD is categorized as Mortgage Backed Securities, while VTIP is Inflation-Protected Bonds. They also come from different issuers: Franklin Templeton and Vanguard. Their fees differ too: 0.25% for FTSD and 0.03% for VTIP.
FTSD currently has the higher Sharpe Ratio (3.30 vs 3.15), 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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