ISTB vs. VTI

Last updated Jun 4, 2026

ISTB (iShares Core 1-5 Year USD Bond ETF) and VTI (Vanguard Total Stock Market ETF) are both exchange-traded funds - ISTB is a Short-Term Bond fund tracking the BBG US Universal 1-5 Year Index (USD), while VTI is a Large Cap Blend Equities fund tracking the CRSP US Total Market Index. Both are passively managed. Over the past 10 years, ISTB returned 2.27%/yr vs 15.05%/yr for VTI. At a 0.05 correlation, their price movements are largely independent. ISTB charges 0.06%/yr vs 0.03%/yr for VTI.

Performance

ISTB vs. VTI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Core 1-5 Year USD Bond ETF (ISTB) and Vanguard Total Stock Market ETF (VTI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ISTB achieves a 0.49% return, which is significantly lower than VTI's 11.20% return. Over the past 10 years, ISTB has underperformed VTI with an annualized return of 2.27%, while VTI has yielded a comparatively higher 15.05% annualized return.

ISTB

• 1D: -0.08%
• 1M: 0.15%
• YTD: 0.49%
• 6M: 0.71%
• 1Y: 4.19%
• 3Y*: 4.95%
• 5Y*: 1.85%
• 10Y*: 2.27%

VTI

• 1D: -0.72%
• 1M: 4.99%
• YTD: 11.20%
• 6M: 11.09%
• 1Y: 28.18%
• 3Y*: 22.07%
• 5Y*: 12.69%
• 10Y*: 15.05%

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

ISTB vs. VTI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ISTB iShares Core 1-5 Year USD Bond ETF	0.49%	6.36%	4.37%	5.56%	-6.08%	-0.71%	4.75%	5.61%	1.02%	1.72%
VTI Vanguard Total Stock Market ETF	11.20%	17.10%	23.81%	26.05%	-19.52%	25.68%	21.08%	30.67%	-5.23%	21.21%

Correlation

The correlation between ISTB and VTI is 0.29, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.29
Correlation (3Y) Calculated over the trailing 3-year period	0.23
Correlation (5Y) Calculated over the trailing 5-year period	0.22
Correlation (10Y) Calculated over the trailing 10-year period	0.09
Correlation (All Time) Calculated using the full available price history since Oct 25, 2012	0.05

Over the past year, ISTB and VTI have become more correlated (0.29) than their long-term average of 0.05, meaning their price movements have been converging.

ISTB vs. VTI - Sectors Allocation Comparison

Sectors	ISTB	VTI
Utilities	99.4%	2.3%
Real Estate	0.6%	2.4%
Basic Materials	-	2.0%
Communication Services	-	10.3%
Consumer Cyclical	-	10.0%
Consumer Defensive	-	4.7%
Energy	-	3.7%
Financial Services	-	12.0%
Healthcare	-	9.2%
Industrials	-	9.8%
Technology	-	33.5%

Return for Risk

ISTB vs. VTI — Risk / Return Rank

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

ISTB

ISTB Risk / Return Rank: 73
ISTB Sharpe Ratio Rank: 71
ISTB Sortino Ratio Rank: 81
ISTB Omega Ratio Rank: 77
ISTB Calmar Ratio Rank: 67
ISTB Martin Ratio Rank: 68

VTI

VTI Risk / Return Rank: 68
VTI Sharpe Ratio Rank: 69
VTI Sortino Ratio Rank: 68
VTI Omega Ratio Rank: 67
VTI Calmar Ratio Rank: 62
VTI Martin Ratio Rank: 75

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.

ISTB vs. VTI - 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 Total Stock Market ETF (VTI). 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.

	ISTB	VTI	Difference
Sharpe ratio: Return per unit of total volatility	2.37	2.33	+0.04
Sortino ratio: Return per unit of downside risk	3.69	3.18	+0.51
Omega ratio: Gain probability vs. loss probability	1.46	1.42	+0.05
Calmar ratio: Return relative to maximum drawdown	3.34	3.17	+0.17
Martin ratio: Return relative to average drawdown	12.72	14.62	-1.91
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ISTB vs. VTI - Sharpe Ratio Comparison

The current ISTB Sharpe Ratio is 2.37, which is comparable to the VTI Sharpe Ratio of 2.33. The chart below compares the historical Sharpe Ratios of ISTB and VTI, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	ISTB	VTI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.37	2.33	+0.04
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.67	0.73	-0.07
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.91	0.82	+0.08
Sharpe Ratio (All Time) Calculated using the full available price history	0.84	0.51	+0.33

Drawdowns

ISTB vs. VTI - Drawdown Comparison

The maximum ISTB drawdown since its inception was -9.34%, smaller than the maximum VTI drawdown of -55.45%. Use the drawdown chart below to compare losses from any high point for ISTB and VTI.

Drawdown Indicators

	ISTB	VTI	Difference
Max Drawdown Largest peak-to-trough decline	-9.34%	-55.45%	+46.11%
Max Drawdown (1Y) Largest decline over 1 year	-1.26%	-8.92%	+7.66%
Max Drawdown (3Y) Largest decline over 3 years	-1.36%	-19.30%	+17.94%
Max Drawdown (5Y) Largest decline over 5 years	-9.34%	-25.36%	+16.02%
Max Drawdown (10Y) Largest decline over 10 years	-9.34%	-35.00%	+25.66%
Current Drawdown Current decline from peak	-0.42%	-0.72%	+0.30%
Average Drawdown Average peak-to-trough decline	-1.22%	-8.03%	+6.81%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.33%	1.93%	-1.60%

Volatility

ISTB vs. VTI - Volatility Comparison

The current volatility for iShares Core 1-5 Year USD Bond ETF (ISTB) is 0.54%, while Vanguard Total Stock Market ETF (VTI) has a volatility of 2.96%. This indicates that ISTB experiences smaller price fluctuations and is considered to be less risky than VTI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ISTB	VTI	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.54%	2.96%	-2.42%
Volatility (6M) Calculated over the trailing 6-month period	1.28%	9.13%	-7.85%
Volatility (1Y) Calculated over the trailing 1-year period	1.77%	12.17%	-10.40%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.79%	17.40%	-14.61%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.51%	18.30%	-15.79%

ISTB vs. VTI - Expense Ratio Comparison

ISTB has a 0.06% expense ratio, which is higher than VTI'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. VTI - Dividend Comparison

ISTB's dividend yield for the trailing twelve months is around 4.25%, more than VTI's 1.01% 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%
VTI Vanguard Total Stock Market ETF	1.01%	1.12%	1.27%	1.44%	1.66%	1.21%	1.42%	1.78%	2.04%	1.71%	1.92%	1.98%

Frequently Asked Questions

Can I hold both ISTB and VTI in my portfolio?

ISTB and VTI have a correlation of 0.29, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ISTB or VTI?

VTI has higher volatility (2.96%) compared to ISTB (0.54%). In terms of maximum drawdown, ISTB dropped -9.34% vs VTI's -55.45%.

Which ETF is better, ISTB or VTI?

On 10-year performance, VTI leads with 15.05% vs 2.27% for ISTB. On fees, VTI is cheaper at 0.03% per year. On volatility, ISTB has been the lower-risk option at 0.54%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ISTB or VTI?

Over the 10-year period, VTI has performed better with a 15.05% return vs 2.27%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ISTB or VTI?

VTI is cheaper with a 0.03% expense ratio, compared with 0.06% for ISTB.

Which ETF pays a higher dividend yield, ISTB or VTI?

ISTB has the higher dividend yield at 4.25%, compared with 1.01% for VTI.

What is the main difference between ISTB and VTI?

ISTB is categorized as Short-Term Bond, while VTI is Large Cap Blend Equities. ISTB tracks BBG US Universal 1-5 Year Index (USD), while VTI tracks CRSP US Total Market Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.06% for ISTB and 0.03% for VTI.

Which has better risk-adjusted returns?

ISTB currently has the higher Sharpe Ratio (2.37 vs 2.33), 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.