ISTB vs. VGIT
ISTB (iShares Core 1-5 Year USD Bond ETF) and VGIT (Vanguard Intermediate-Term Treasury ETF) are both exchange-traded funds - ISTB is a Short-Term Bond fund tracking the BBG US Universal 1-5 Year Index (USD), while VGIT is a Government Bonds fund tracking the Bloomberg U.S. Treasury 3-10 Year Index. Both are passively managed. Over the past 10 years, ISTB returned 2.23%/yr vs 1.13%/yr for VGIT. A 0.73 correlation means they provide meaningful diversification when combined. ISTB charges 0.06%/yr vs 0.03%/yr for VGIT.
Performance
ISTB vs. VGIT - Performance Comparison
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Returns By Period
In the year-to-date period, ISTB achieves a 0.44% return, which is significantly higher than VGIT's -0.51% return. Over the past 10 years, ISTB has outperformed VGIT with an annualized return of 2.23%, while VGIT has yielded a comparatively lower 1.13% annualized return.
ISTB
- 1D
- -0.12%
- 1M
- 0.19%
- YTD
- 0.44%
- 6M
- 0.59%
- 1Y
- 3.73%
- 3Y*
- 4.98%
- 5Y*
- 1.90%
- 10Y*
- 2.23%
VGIT
- 1D
- -0.25%
- 1M
- 0.26%
- YTD
- -0.51%
- 6M
- -0.42%
- 1Y
- 2.89%
- 3Y*
- 3.51%
- 5Y*
- 0.08%
- 10Y*
- 1.13%
ISTB vs. VGIT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ISTB iShares Core 1-5 Year USD Bond ETF | 0.44% | 6.36% | 4.37% | 5.56% | -6.08% | -0.71% | 4.75% | 5.61% | 1.02% | 1.72% |
VGIT Vanguard Intermediate-Term Treasury ETF | -0.51% | 7.34% | 1.39% | 4.28% | -10.53% | -2.64% | 7.71% | 6.19% | 1.35% | 1.70% |
Correlation
The correlation between ISTB and VGIT is 0.95, 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 | 0.95 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.95 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.93 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.82 |
Correlation (All Time) Calculated using the full available price history since Oct 24, 2012 | 0.73 |
Over the past year, ISTB and VGIT have become more correlated (0.95) than their long-term average of 0.73, meaning their price movements have been converging.
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Return for Risk
ISTB vs. VGIT — Risk / Return Rank
ISTB
VGIT
ISTB vs. VGIT - Risk-Adjusted Trends 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.
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.
| ISTB | VGIT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.23 | ||
| Sortino ratioReturn per unit of downside risk | +1.91 | ||
| Omega ratioGain probability vs. loss probability | 1.40 | 1.15 | +0.25 |
| Calmar ratioReturn relative to maximum drawdown | 2.98 | 1.02 | +1.96 |
| Martin ratioReturn relative to average drawdown | 10.97 | 2.78 | +8.19 |
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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.
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Drawdown Indicators
| ISTB | VGIT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -9.34% | -16.05% | +6.71% |
Max Drawdown (1Y)Largest decline over 1 year | -1.26% | -2.83% | +1.57% |
Max Drawdown (3Y)Largest decline over 3 years | -1.36% | -4.34% | +2.98% |
Max Drawdown (5Y)Largest decline over 5 years | -9.34% | -15.02% | +5.68% |
Max Drawdown (10Y)Largest decline over 10 years | -9.34% | -16.05% | +6.71% |
Current DrawdownCurrent decline from peak | -0.46% | -2.44% | +1.98% |
Average DrawdownAverage peak-to-trough decline | -1.22% | -3.52% | +2.30% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.34% | 1.04% | -0.70% |
Volatility
ISTB vs. VGIT - Volatility Comparison
The current volatility for iShares Core 1-5 Year USD Bond ETF (ISTB) is 0.63%, while Vanguard Intermediate-Term Treasury ETF (VGIT) has a volatility of 1.10%. 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.
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Volatility by Period
| ISTB | VGIT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.63% | 1.10% | -0.47% |
Volatility (6M)Calculated over the trailing 6-month period | 1.36% | 2.48% | -1.12% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.80% | 3.38% | -1.58% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.80% | 5.39% | -2.59% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.51% | 4.51% | -2.00% |
ISTB vs. VGIT - Expense Ratio Comparison
ISTB has a 0.06% expense ratio, which is higher than VGIT'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
ISTB vs. VGIT - Dividend Comparison
ISTB's dividend yield for the trailing twelve months is around 4.25%, more than VGIT's 3.87% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ISTB iShares Core 1-5 Year USD Bond ETF | 4.25% | 4.12% | 3.83% | 2.97% | 2.01% | 1.69% | 2.20% | 2.75% | 2.57% | 2.06% | 1.90% | 1.58% |
VGIT Vanguard Intermediate-Term Treasury ETF | 3.87% | 3.79% | 3.67% | 2.73% | 1.74% | 1.69% | 2.23% | 2.24% | 2.05% | 1.67% | 1.69% | 1.69% |
Frequently Asked Questions
With a correlation of 0.95, ISTB and VGIT move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
VGIT has higher volatility (1.10%) compared to ISTB (0.63%). In terms of maximum drawdown, ISTB dropped -9.34% vs VGIT's -16.05%.
On 10-year performance, ISTB leads with 2.23% vs 1.13% for VGIT. On fees, VGIT is cheaper at 0.03% per year. On volatility, ISTB has been the lower-risk option at 0.63%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, ISTB has performed better with a 2.23% return vs 1.13%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VGIT is cheaper with a 0.03% expense ratio, compared with 0.06% for ISTB.
ISTB has the higher dividend yield at 4.25%, compared with 3.87% for VGIT.
ISTB is categorized as Short-Term Bond, while VGIT is Government Bonds. ISTB tracks BBG US Universal 1-5 Year Index (USD), while VGIT tracks Bloomberg U.S. Treasury 3-10 Year Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.06% for ISTB and 0.03% for VGIT.
ISTB currently has the higher Sharpe Ratio (2.09 vs 0.86), 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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