IBIC vs. VTIP
IBIC (iShares iBonds Oct 2026 Term TIPS ETF) and VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) are both Inflation-Protected Bonds funds - IBIC tracks the ICE 2026 Maturity US Inflation-Linked Treasury Index while VTIP tracks the Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index. Both are passively managed. Over the past year, IBIC returned 4.38% vs 3.64% for VTIP. A 0.70 correlation means they provide meaningful diversification when combined. IBIC charges 0.10%/yr vs 0.03%/yr for VTIP.
Performance
IBIC vs. VTIP - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, IBIC achieves a 2.39% return, which is significantly higher than VTIP's 1.34% return.
IBIC
- 1D
- 0.06%
- 1M
- 0.08%
- YTD
- 2.39%
- 6M
- 2.49%
- 1Y
- 4.38%
- 3Y*
- —
- 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%
IBIC vs. VTIP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | |
|---|---|---|---|---|
IBIC iShares iBonds Oct 2026 Term TIPS ETF | 2.39% | 4.96% | 5.25% | 2.17% |
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 1.34% | 6.07% | 4.74% | 2.13% |
Correlation
The correlation between IBIC and VTIP is 0.36, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.36 |
Correlation (All Time) Calculated using the full available price history since Sep 15, 2023 | 0.70 |
Over the past year, the correlation between IBIC and VTIP has dropped to 0.36 - well below their long-term average of 0.70, suggesting their price drivers have been diverging.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
IBIC vs. VTIP — Risk / Return Rank
IBIC
VTIP
IBIC vs. VTIP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares iBonds Oct 2026 Term TIPS ETF (IBIC) 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.
| IBIC | VTIP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +2.62 | ||
| Sortino ratioReturn per unit of downside risk | +5.26 | ||
| Omega ratioGain probability vs. loss probability | 2.21 | 1.47 | +0.74 |
| Calmar ratioReturn relative to maximum drawdown | 16.41 | 5.12 | +11.29 |
| Martin ratioReturn relative to average drawdown | 58.11 | 18.66 | +39.45 |
Loading charts...
Drawdowns
IBIC vs. VTIP - Drawdown Comparison
The maximum IBIC drawdown since its inception was -0.90%, smaller than the maximum VTIP drawdown of -6.27%. Use the drawdown chart below to compare losses from any high point for IBIC and VTIP.
Loading charts...
Drawdown Indicators
| IBIC | VTIP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -0.90% | -6.27% | +5.37% |
Max Drawdown (1Y)Largest decline over 1 year | -0.27% | -0.71% | +0.44% |
Max Drawdown (3Y)Largest decline over 3 years | — | -0.98% | — |
Max Drawdown (5Y)Largest decline over 5 years | — | -5.50% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -6.27% | — |
Current DrawdownCurrent decline from peak | -0.11% | -0.71% | +0.60% |
Average DrawdownAverage peak-to-trough decline | -0.10% | -1.04% | +0.94% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.08% | 0.20% | -0.12% |
Volatility
IBIC vs. VTIP - Volatility Comparison
The current volatility for iShares iBonds Oct 2026 Term TIPS ETF (IBIC) is 0.16%, while Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) has a volatility of 0.65%. This indicates that IBIC 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.
Loading charts...
Volatility by Period
| IBIC | VTIP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.16% | 0.65% | -0.49% |
Volatility (6M)Calculated over the trailing 6-month period | 0.67% | 1.17% | -0.50% |
Volatility (1Y)Calculated over the trailing 1-year period | 0.89% | 1.58% | -0.69% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.57% | 2.77% | -1.20% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.57% | 2.74% | -1.17% |
IBIC vs. VTIP - Expense Ratio Comparison
IBIC has a 0.10% 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
IBIC vs. VTIP - Dividend Comparison
IBIC's dividend yield for the trailing twelve months is around 3.59%, which matches VTIP's 3.61% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
IBIC iShares iBonds Oct 2026 Term TIPS ETF | 3.59% | 4.43% | 4.65% | 0.83% | 0.00% | 0.00% | 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
IBIC and VTIP have a correlation of 0.36, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VTIP has higher volatility (0.65%) compared to IBIC (0.16%). In terms of maximum drawdown, IBIC dropped -0.90% vs VTIP's -6.27%.
On 1-year performance, IBIC leads with 4.38% vs 3.64% for VTIP. On fees, VTIP is cheaper at 0.03% per year. On volatility, IBIC has been the lower-risk option at 0.16%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, IBIC has performed better with a 4.38% return vs 3.64%. 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 0.10% for IBIC.
VTIP has the higher dividend yield at 3.61%, compared with 3.59% for IBIC.
IBIC tracks ICE 2026 Maturity US Inflation-Linked Treasury 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: 0.10% for IBIC and 0.03% for VTIP.
IBIC currently has the higher Sharpe Ratio (4.94 vs 2.32), 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.
Find the right allocation for IBIC and VTIP
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer