IBIL vs. VTP

Last updated Jul 15, 2026

IBIL (iShares iBonds Oct 2035 Term TIPS ETF) and VTP (Vanguard Total Inflation-Protected Securities ETF) are both Inflation-Protected Bonds funds - IBIL tracks the ICE 2035 Maturity US Treasury TIPS Index while VTP tracks the ICE U.S. Treasury Inflation Linked Bond Index. Both are passively managed. Over the past year, IBIL returned 4.22% vs 3.27% for VTP. Their correlation of 0.88 suggests significant overlap in exposure. IBIL charges 0.10%/yr vs 0.05%/yr for VTP.

Performance

IBIL vs. VTP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares iBonds Oct 2035 Term TIPS ETF (IBIL) and Vanguard Total Inflation-Protected Securities ETF (VTP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IBIL achieves a 0.97% return, which is significantly higher than VTP's 0.90% return.

IBIL

• 1D: 0.16%
• 1M: -0.38%
• 6M: 0.65%
• YTD: 0.97%
• 1Y: 4.22%
• 3Y*: —
• 5Y*: —
• 10Y*: —

VTP

• 1D: 0.07%
• 1M: -0.50%
• 6M: 0.58%
• YTD: 0.90%
• 1Y: 3.27%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

IBIL vs. VTP - Yearly Performance Comparison

	2026 (YTD)	2025
IBIL iShares iBonds Oct 2035 Term TIPS ETF	0.97%	3.51%
VTP Vanguard Total Inflation-Protected Securities ETF	0.90%	2.46%

Correlation

The correlation between IBIL and VTP is 0.88, 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	0.88
Correlation (All Time) Calculated using the full available price history since Jul 9, 2025	0.88

The correlation between IBIL and VTP has been stable across timeframes, ranging from 0.88 to 0.88 - a consistent structural relationship.

Return for Risk

IBIL vs. VTP — Risk / Return Rank

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

IBIL

IBIL Risk / Return Rank: 28
IBIL Sharpe Ratio Rank: 25
IBIL Sortino Ratio Rank: 23
IBIL Omega Ratio Rank: 26
IBIL Calmar Ratio Rank: 37
IBIL Martin Ratio Rank: 31

VTP

VTP Risk / Return Rank: 35
VTP Sharpe Ratio Rank: 33
VTP Sortino Ratio Rank: 32
VTP Omega Ratio Rank: 30
VTP Calmar Ratio Rank: 42
VTP Martin Ratio Rank: 38

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.

IBIL vs. VTP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares iBonds Oct 2035 Term TIPS ETF (IBIL) and Vanguard Total Inflation-Protected Securities ETF (VTP). 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.

	IBIL	VTP	Difference
Sharpe ratio: Return per unit of total volatility	0.75	0.98	-0.22
Sortino ratio: Return per unit of downside risk	1.07	1.43	-0.36
Omega ratio: Gain probability vs. loss probability	1.15	1.17	-0.02
Calmar ratio: Return relative to maximum drawdown	1.54	1.71	-0.17
Martin ratio: Return relative to average drawdown	3.55	4.86	-1.31

IBIL vs. VTP - Sharpe Ratio Comparison

The current IBIL Sharpe Ratio is 0.75, which is comparable to the VTP Sharpe Ratio of 0.98. The chart below compares the historical Sharpe Ratios of IBIL and VTP, 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

IBIL vs. VTP - Drawdown Comparison

The maximum IBIL drawdown since its inception was -5.28%, which is greater than VTP's maximum drawdown of -1.92%. Use the drawdown chart below to compare losses from any high point for IBIL and VTP.

Drawdown Indicators

	IBIL	VTP	Difference
Max Drawdown Largest peak-to-trough decline	-5.28%	-1.92%	-3.36%
Max Drawdown (1Y) Largest decline over 1 year	-2.76%	-1.92%	-0.84%
Current Drawdown Current decline from peak	-1.26%	-0.94%	-0.32%
Average Drawdown Average peak-to-trough decline	-1.44%	-0.53%	-0.91%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.19%	0.67%	+0.52%

Volatility

IBIL vs. VTP - Volatility Comparison

iShares iBonds Oct 2035 Term TIPS ETF (IBIL) has a higher volatility of 1.56% compared to Vanguard Total Inflation-Protected Securities ETF (VTP) at 1.19%. This indicates that IBIL's price experiences larger fluctuations and is considered to be riskier than VTP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IBIL	VTP	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.56%	1.19%	+0.37%
Volatility (6M) Calculated over the trailing 6-month period	3.33%	2.48%	+0.85%
Volatility (1Y) Calculated over the trailing 1-year period	5.64%	3.36%	+2.28%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	7.99%	3.35%	+4.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	7.99%	3.35%	+4.64%

IBIL vs. VTP - Expense Ratio Comparison

IBIL has a 0.10% expense ratio, which is higher than VTP's 0.05% 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

IBIL vs. VTP - Dividend Comparison

IBIL's dividend yield for the trailing twelve months is around 5.12%, more than VTP's 2.98% yield.

Position	TTM	2025
IBIL iShares iBonds Oct 2035 Term TIPS ETF	5.12%	2.93%
VTP Vanguard Total Inflation-Protected Securities ETF	2.98%	1.56%

Frequently Asked Questions

Can I hold both IBIL and VTP in my portfolio?

IBIL and VTP have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IBIL or VTP?

IBIL has higher volatility (1.56%) compared to VTP (1.19%). In terms of maximum drawdown, IBIL dropped -5.28% vs VTP's -1.92%.

Which ETF is better, IBIL or VTP?

On 1-year performance, IBIL leads with 4.22% vs 3.27% for VTP. On fees, VTP is cheaper at 0.05% per year. On volatility, VTP has been the lower-risk option at 1.19%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IBIL or VTP?

Over the 1-year period, IBIL has performed better with a 4.22% return vs 3.27%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IBIL or VTP?

VTP is cheaper with a 0.05% expense ratio, compared with 0.10% for IBIL.

Which ETF pays a higher dividend yield, IBIL or VTP?

IBIL has the higher dividend yield at 5.12%, compared with 2.98% for VTP.

What is the main difference between IBIL and VTP?

IBIL tracks ICE 2035 Maturity US Treasury TIPS Index, while VTP tracks ICE U.S. Treasury Inflation Linked Bond Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.10% for IBIL and 0.05% for VTP.

Which has better risk-adjusted returns?

VTP currently has the higher Sharpe Ratio (0.98 vs 0.75), 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.