IBIJ vs. VTIP

Last updated Jun 30, 2026

IBIJ (iShares iBonds Oct 2033 Term TIPS ETF) and VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) are both Inflation-Protected Bonds funds. Over the past year, IBIJ returned 4.51% vs 3.80% for VTIP. Their correlation of 0.83 suggests significant overlap in exposure. IBIJ charges 0.10%/yr vs 0.03%/yr for VTIP.

Performance

IBIJ vs. VTIP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares iBonds Oct 2033 Term TIPS ETF (IBIJ) 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, IBIJ achieves a 1.61% return, which is significantly lower than VTIP's 1.72% return.

IBIJ

• 1D: 0.09%
• 1M: -0.33%
• YTD: 1.61%
• 6M: 1.33%
• 1Y: 4.51%
• 3Y*: —
• 5Y*: —
• 10Y*: —

VTIP

• 1D: 0.10%
• 1M: -0.28%
• YTD: 1.72%
• 6M: 1.72%
• 1Y: 3.80%
• 3Y*: 5.19%
• 5Y*: 3.31%
• 10Y*: 3.03%

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

IBIJ vs. VTIP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
IBIJ iShares iBonds Oct 2033 Term TIPS ETF	1.61%	8.59%	0.69%	4.98%
VTIP Vanguard Short-Term Inflation-Protected Securities ETF	1.72%	6.07%	4.74%	2.43%

Correlation

The correlation between IBIJ and VTIP is 0.79, 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	0.79
Correlation (All Time) Calculated using the full available price history since Sep 21, 2023	0.83

The correlation between IBIJ and VTIP has been stable across timeframes, ranging from 0.79 to 0.83 - a consistent structural relationship.

Return for Risk

IBIJ vs. VTIP — Risk / Return Rank

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

IBIJ

IBIJ Risk / Return Rank: 38
IBIJ Sharpe Ratio Rank: 35
IBIJ Sortino Ratio Rank: 35
IBIJ Omega Ratio Rank: 32
IBIJ Calmar Ratio Rank: 44
IBIJ Martin Ratio Rank: 44

VTIP

VTIP Risk / Return Rank: 91
VTIP Sharpe Ratio Rank: 87
VTIP Sortino Ratio Rank: 92
VTIP Omega Ratio Rank: 91
VTIP Calmar Ratio Rank: 92
VTIP Martin Ratio Rank: 91

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.

IBIJ vs. VTIP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares iBonds Oct 2033 Term TIPS ETF (IBIJ) 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.

	IBIJ	VTIP	Difference
Sharpe ratio: Return per unit of total volatility	1.14	2.43	-1.28
Sortino ratio: Return per unit of downside risk	1.70	3.81	-2.11
Omega ratio: Gain probability vs. loss probability	1.20	1.50	-0.30
Calmar ratio: Return relative to maximum drawdown	1.95	5.35	-3.40
Martin ratio: Return relative to average drawdown	6.23	18.14	-11.91

IBIJ vs. VTIP - Sharpe Ratio Comparison

The current IBIJ Sharpe Ratio is 1.14, which is lower than the VTIP Sharpe Ratio of 2.43. The chart below compares the historical Sharpe Ratios of IBIJ 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

IBIJ vs. VTIP - Drawdown Comparison

The maximum IBIJ drawdown since its inception was -5.27%, smaller than the maximum VTIP drawdown of -6.27%. Use the drawdown chart below to compare losses from any high point for IBIJ and VTIP.

Drawdown Indicators

	IBIJ	VTIP	Difference
Max Drawdown Largest peak-to-trough decline	-5.27%	-6.27%	+1.00%
Max Drawdown (1Y) Largest decline over 1 year	-2.32%	-0.71%	-1.61%
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 Drawdown Current decline from peak	-0.61%	-0.34%	-0.27%
Average Drawdown Average peak-to-trough decline	-1.29%	-1.04%	-0.25%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.72%	0.21%	+0.51%

Volatility

IBIJ vs. VTIP - Volatility Comparison

iShares iBonds Oct 2033 Term TIPS ETF (IBIJ) has a higher volatility of 1.51% compared to Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) at 0.64%. This indicates that IBIJ'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

	IBIJ	VTIP	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.51%	0.64%	+0.87%
Volatility (6M) Calculated over the trailing 6-month period	2.89%	1.18%	+1.71%
Volatility (1Y) Calculated over the trailing 1-year period	3.97%	1.58%	+2.39%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.87%	2.77%	+3.10%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.87%	2.74%	+3.13%

IBIJ vs. VTIP - Expense Ratio Comparison

IBIJ 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

IBIJ vs. VTIP - Dividend Comparison

IBIJ's dividend yield for the trailing twelve months is around 3.93%, more than VTIP's 3.59% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
IBIJ iShares iBonds Oct 2033 Term TIPS ETF	3.93%	4.66%	4.42%	0.60%	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

Can I hold both IBIJ and VTIP in my portfolio?

IBIJ and VTIP have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IBIJ or VTIP?

IBIJ has higher volatility (1.51%) compared to VTIP (0.64%). In terms of maximum drawdown, IBIJ dropped -5.27% vs VTIP's -6.27%.

Which ETF is better, IBIJ or VTIP?

On 1-year performance, IBIJ leads with 4.51% vs 3.80% for VTIP. On fees, VTIP is cheaper at 0.03% per year. On volatility, VTIP has been the lower-risk option at 0.64%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IBIJ or VTIP?

Over the 1-year period, IBIJ has performed better with a 4.51% return vs 3.80%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IBIJ or VTIP?

VTIP is cheaper with a 0.03% expense ratio, compared with 0.10% for IBIJ.

Which ETF pays a higher dividend yield, IBIJ or VTIP?

IBIJ has the higher dividend yield at 3.93%, compared with 3.59% for VTIP.

What is the main difference between IBIJ and VTIP?

They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.10% for IBIJ and 0.03% for VTIP.

Which has better risk-adjusted returns?

VTIP currently has the higher Sharpe Ratio (2.43 vs 1.14), 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.