ISTB vs. VGIT
Compare and contrast key facts about iShares Core 1-5 Year USD Bond ETF (ISTB) and Vanguard Intermediate-Term Treasury ETF (VGIT).
ISTB and VGIT are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. ISTB is a passively managed fund by iShares that tracks the performance of the Barclays U.S. Government/Credit 1-5 Year Bond Index. It was launched on Oct 18, 2012. VGIT is a passively managed fund by Vanguard that tracks the performance of the Barclays U.S. 3-10 Year Government Float Adjusted Index. It was launched on Nov 19, 2009. Both ISTB and VGIT are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: ISTB or VGIT.
Key characteristics
| ISTB | VGIT | |
|---|---|---|
| YTD Return | 3.96% | 1.55% |
| 1Y Return | 7.12% | 6.25% |
| 3Y Return (Ann) | 0.99% | -1.77% |
| 5Y Return (Ann) | 1.53% | -0.10% |
| 10Y Return (Ann) | 1.88% | 1.14% |
| Sharpe Ratio | 2.69 | 1.23 |
| Sortino Ratio | 4.27 | 1.84 |
| Omega Ratio | 1.55 | 1.22 |
| Calmar Ratio | 1.49 | 0.45 |
| Martin Ratio | 14.89 | 3.96 |
| Ulcer Index | 0.49% | 1.58% |
| Daily Std Dev | 2.69% | 5.09% |
| Max Drawdown | -9.34% | -16.05% |
| Current Drawdown | -1.10% | -8.50% |
Correlation
The correlation between ISTB and VGIT is 0.70, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
ISTB vs. VGIT - Performance Comparison
In the year-to-date period, ISTB achieves a 3.96% return, which is significantly higher than VGIT's 1.55% return. Over the past 10 years, ISTB has outperformed VGIT with an annualized return of 1.88%, while VGIT has yielded a comparatively lower 1.14% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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ISTB vs. VGIT - Expense Ratio Comparison
ISTB has a 0.06% expense ratio, which is higher than VGIT's 0.04% 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%.
Risk-Adjusted Performance
ISTB vs. VGIT - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Core 1-5 Year USD Bond ETF (ISTB) and Vanguard Intermediate-Term Treasury ETF (VGIT). 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.
Dividends
ISTB vs. VGIT - Dividend Comparison
ISTB's dividend yield for the trailing twelve months is around 3.73%, more than VGIT's 3.56% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ISTB iShares Core 1-5 Year USD Bond ETF | 3.73% | 2.97% | 2.01% | 1.69% | 2.20% | 2.75% | 2.57% | 2.07% | 1.90% | 1.58% | 1.07% | 0.60% |
VGIT Vanguard Intermediate-Term Treasury ETF | 3.56% | 2.72% | 1.74% | 1.69% | 2.23% | 2.24% | 2.05% | 1.67% | 1.69% | 1.69% | 1.54% | 1.63% |
Drawdowns
ISTB vs. VGIT - Drawdown Comparison
The maximum ISTB drawdown since its inception was -9.34%, smaller than the maximum VGIT drawdown of -16.05%. Use the drawdown chart below to compare losses from any high point for ISTB and VGIT. For additional features, visit the drawdowns tool.
Volatility
ISTB vs. VGIT - Volatility Comparison
The current volatility for iShares Core 1-5 Year USD Bond ETF (ISTB) is 0.61%, while Vanguard Intermediate-Term Treasury ETF (VGIT) has a volatility of 1.25%. This indicates that ISTB experiences smaller price fluctuations and is considered to be less risky than VGIT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.