ISTB vs. VTI
Compare and contrast key facts about iShares Core 1-5 Year USD Bond ETF (ISTB) and Vanguard Total Stock Market ETF (VTI).
ISTB and VTI 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. VTI is a passively managed fund by Vanguard that tracks the performance of the CRSP US Total Market Index. It was launched on May 24, 2001. Both ISTB and VTI 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 VTI.
Key characteristics
| ISTB | VTI | |
|---|---|---|
| YTD Return | 4.04% | 25.76% |
| 1Y Return | 7.33% | 38.64% |
| 3Y Return (Ann) | 0.89% | 8.41% |
| 5Y Return (Ann) | 1.57% | 15.27% |
| 10Y Return (Ann) | 1.89% | 12.86% |
| Sharpe Ratio | 2.56 | 3.05 |
| Sortino Ratio | 4.03 | 4.07 |
| Omega Ratio | 1.51 | 1.57 |
| Calmar Ratio | 1.40 | 4.13 |
| Martin Ratio | 14.46 | 19.90 |
| Ulcer Index | 0.48% | 1.94% |
| Daily Std Dev | 2.71% | 12.68% |
| Max Drawdown | -9.34% | -55.45% |
| Current Drawdown | -1.01% | 0.00% |
Correlation
The correlation between ISTB and VTI is 0.03, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
ISTB vs. VTI - Performance Comparison
In the year-to-date period, ISTB achieves a 4.04% return, which is significantly lower than VTI's 25.76% return. Over the past 10 years, ISTB has underperformed VTI with an annualized return of 1.89%, while VTI has yielded a comparatively higher 12.86% 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. 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%.
Risk-Adjusted Performance
ISTB vs. VTI - 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 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.
Dividends
ISTB vs. VTI - Dividend Comparison
ISTB's dividend yield for the trailing twelve months is around 3.73%, more than VTI's 1.27% 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% |
VTI Vanguard Total Stock Market ETF | 1.27% | 1.44% | 1.67% | 1.21% | 1.42% | 1.78% | 2.04% | 1.71% | 1.92% | 1.98% | 1.76% | 1.74% |
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. For additional features, visit the drawdowns tool.
Volatility
ISTB vs. VTI - Volatility Comparison
The current volatility for iShares Core 1-5 Year USD Bond ETF (ISTB) is 0.62%, while Vanguard Total Stock Market ETF (VTI) has a volatility of 4.11%. 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.