IBID vs. VTIP
IBID (iShares iBonds Oct 2027 Term TIPS ETF) and VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) are both Inflation-Protected Bonds funds - IBID tracks the ICE 2027 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, IBID returned 4.04% vs 3.64% for VTIP. Their correlation of 0.83 suggests significant overlap in exposure. IBID charges 0.10%/yr vs 0.03%/yr for VTIP.
Performance
IBID vs. VTIP - Performance Comparison
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Returns By Period
In the year-to-date period, IBID achieves a 1.99% return, which is significantly higher than VTIP's 1.34% return.
IBID
- 1D
- 0.00%
- 1M
- -0.19%
- YTD
- 1.99%
- 6M
- 2.08%
- 1Y
- 4.04%
- 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%
IBID vs. VTIP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | |
|---|---|---|---|---|
IBID iShares iBonds Oct 2027 Term TIPS ETF | 1.99% | 5.66% | 4.71% | 2.61% |
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 1.34% | 6.07% | 4.74% | 2.13% |
Correlation
The correlation between IBID and VTIP is 0.62, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.62 |
Correlation (All Time) Calculated using the full available price history since Sep 15, 2023 | 0.83 |
Over the past year, the correlation between IBID and VTIP has dropped to 0.62 - well below their long-term average of 0.83, suggesting their price drivers have been diverging.
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Return for Risk
IBID vs. VTIP — Risk / Return Rank
IBID
VTIP
IBID vs. VTIP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares iBonds Oct 2027 Term TIPS ETF (IBID) 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.
| IBID | VTIP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.97 | ||
| Sortino ratioReturn per unit of downside risk | +1.92 | ||
| Omega ratioGain probability vs. loss probability | 1.75 | 1.47 | +0.27 |
| Calmar ratioReturn relative to maximum drawdown | 8.22 | 5.12 | +3.10 |
| Martin ratioReturn relative to average drawdown | 30.99 | 18.66 | +12.33 |
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Drawdowns
IBID vs. VTIP - Drawdown Comparison
The maximum IBID drawdown since its inception was -1.28%, smaller than the maximum VTIP drawdown of -6.27%. Use the drawdown chart below to compare losses from any high point for IBID and VTIP.
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Drawdown Indicators
| IBID | VTIP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -1.28% | -6.27% | +4.99% |
Max Drawdown (1Y)Largest decline over 1 year | -0.49% | -0.71% | +0.22% |
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 | -0.49% | -0.71% | +0.22% |
Average DrawdownAverage peak-to-trough decline | -0.22% | -1.04% | +0.82% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.13% | 0.20% | -0.07% |
Volatility
IBID vs. VTIP - Volatility Comparison
The current volatility for iShares iBonds Oct 2027 Term TIPS ETF (IBID) is 0.35%, while Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) has a volatility of 0.65%. This indicates that IBID 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
| IBID | VTIP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.35% | 0.65% | -0.30% |
Volatility (6M)Calculated over the trailing 6-month period | 0.86% | 1.17% | -0.31% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.23% | 1.58% | -0.35% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.24% | 2.77% | -0.53% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.24% | 2.74% | -0.50% |
IBID vs. VTIP - Expense Ratio Comparison
IBID 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
IBID vs. VTIP - Dividend Comparison
IBID's dividend yield for the trailing twelve months is around 3.68%, more than VTIP's 3.61% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
IBID iShares iBonds Oct 2027 Term TIPS ETF | 3.68% | 4.43% | 4.24% | 0.81% | 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
IBID and VTIP have a correlation of 0.62, 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 IBID (0.35%). In terms of maximum drawdown, IBID dropped -1.28% vs VTIP's -6.27%.
On 1-year performance, IBID leads with 4.04% vs 3.64% for VTIP. On fees, VTIP is cheaper at 0.03% per year. On volatility, IBID has been the lower-risk option at 0.35%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, IBID has performed better with a 4.04% 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 IBID.
IBID has the higher dividend yield at 3.68%, compared with 3.61% for VTIP.
IBID tracks ICE 2027 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 IBID and 0.03% for VTIP.
IBID currently has the higher Sharpe Ratio (3.29 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.
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