IBII vs. VTIP
IBII (iShares iBonds Oct 2032 Term TIPS ETF) and VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) are both Inflation-Protected Bonds funds - IBII tracks the ICE 2032 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, IBII returned 5.28% vs 4.51% for VTIP. Their correlation of 0.84 suggests significant overlap in exposure. IBII charges 0.10%/yr vs 0.03%/yr for VTIP.
Performance
IBII vs. VTIP - Performance Comparison
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Returns By Period
In the year-to-date period, IBII achieves a 1.63% return, which is significantly lower than VTIP's 1.97% return.
IBII
- 1D
- 0.02%
- 1M
- -0.38%
- YTD
- 1.63%
- 6M
- 1.21%
- 1Y
- 5.28%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
VTIP
- 1D
- -0.08%
- 1M
- 0.10%
- YTD
- 1.97%
- 6M
- 1.99%
- 1Y
- 4.51%
- 3Y*
- 5.18%
- 5Y*
- 3.35%
- 10Y*
- 3.13%
IBII vs. VTIP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | |
|---|---|---|---|---|
IBII iShares iBonds Oct 2032 Term TIPS ETF | 1.63% | 8.65% | 1.21% | 4.85% |
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 1.97% | 6.07% | 4.74% | 2.47% |
Correlation
The correlation between IBII and VTIP is 0.82, 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 | 0.82 |
Correlation (All Time) Calculated using the full available price history since Sep 22, 2023 | 0.84 |
The correlation between IBII and VTIP has been stable across timeframes, ranging from 0.82 to 0.84 - a consistent structural relationship.
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Return for Risk
IBII vs. VTIP — Risk / Return Rank
IBII
VTIP
IBII vs. VTIP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares iBonds Oct 2032 Term TIPS ETF (IBII) 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.
| IBII | VTIP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.46 | ||
| Sortino ratioReturn per unit of downside risk | -2.75 | ||
| Omega ratioGain probability vs. loss probability | 1.28 | 1.63 | -0.35 |
| Calmar ratioReturn relative to maximum drawdown | 2.68 | 6.48 | -3.80 |
| Martin ratioReturn relative to average drawdown | 9.32 | 25.53 | -16.21 |
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
| IBII | VTIP | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.56 | 3.02 | -1.46 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | — | 1.21 | — |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 1.15 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.12 | 0.89 | +0.23 |
Drawdowns
IBII vs. VTIP - Drawdown Comparison
The maximum IBII drawdown since its inception was -4.65%, smaller than the maximum VTIP drawdown of -6.27%. Use the drawdown chart below to compare losses from any high point for IBII and VTIP.
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Drawdown Indicators
| IBII | VTIP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -4.65% | -6.27% | +1.62% |
Max Drawdown (1Y)Largest decline over 1 year | -1.98% | -0.70% | -1.28% |
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 | -0.65% | -0.10% | -0.55% |
Average DrawdownAverage peak-to-trough decline | -1.12% | -1.04% | -0.08% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.58% | 0.18% | +0.40% |
Volatility
IBII vs. VTIP - Volatility Comparison
iShares iBonds Oct 2032 Term TIPS ETF (IBII) has a higher volatility of 0.89% compared to Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) at 0.42%. This indicates that IBII'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
| IBII | VTIP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.89% | 0.42% | +0.47% |
Volatility (6M)Calculated over the trailing 6-month period | 2.29% | 1.03% | +1.26% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.42% | 1.50% | +1.92% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.42% | 2.77% | +2.65% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.42% | 2.74% | +2.68% |
IBII vs. VTIP - Expense Ratio Comparison
IBII 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
IBII vs. VTIP - Dividend Comparison
IBII's dividend yield for the trailing twelve months is around 4.05%, more than VTIP's 3.59% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
IBII iShares iBonds Oct 2032 Term TIPS ETF | 4.05% | 4.80% | 4.76% | 1.10% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
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% |
Frequently Asked Questions
IBII and VTIP have a correlation of 0.82, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IBII has higher volatility (0.89%) compared to VTIP (0.42%). In terms of maximum drawdown, IBII dropped -4.65% vs VTIP's -6.27%.
On 1-year performance, IBII leads with 5.28% vs 4.51% for VTIP. On fees, VTIP is cheaper at 0.03% per year. On volatility, VTIP has been the lower-risk option at 0.42%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, IBII has performed better with a 5.28% return vs 4.51%. 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 IBII.
IBII has the higher dividend yield at 4.05%, compared with 3.59% for VTIP.
IBII tracks ICE 2032 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 IBII and 0.03% for VTIP.
VTIP currently has the higher Sharpe Ratio (3.02 vs 1.56), 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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