LTPZ vs. VFSTX

Last updated Jun 14, 2026

LTPZ (PIMCO 15+ Year US TIPS Index ETF) and VFSTX (Vanguard Short-Term Investment-Grade Fund Investor Shares) are both funds - LTPZ is a Inflation-Protected Bonds fund tracking the ICE BofA US Inflation-Linked Treasury (15+ Y), while VFSTX is a Total Bond Market fund managed by Vanguard. Over the past 10 years, LTPZ returned 0.75%/yr vs 2.51%/yr for VFSTX. A 0.52 correlation means they provide meaningful diversification when combined. Both charge a 0.20% expense ratio.

Performance

LTPZ vs. VFSTX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PIMCO 15+ Year US TIPS Index ETF (LTPZ) and Vanguard Short-Term Investment-Grade Fund Investor Shares (VFSTX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LTPZ achieves a 0.53% return, which is significantly lower than VFSTX's 0.67% return. Over the past 10 years, LTPZ has underperformed VFSTX with an annualized return of 0.75%, while VFSTX has yielded a comparatively higher 2.51% annualized return.

LTPZ

• 1D: 0.11%
• 1M: 2.33%
• YTD: 0.53%
• 6M: 0.57%
• 1Y: 4.30%
• 3Y*: -0.67%
• 5Y*: -5.50%
• 10Y*: 0.75%

VFSTX

• 1D: 0.19%
• 1M: 0.59%
• YTD: 0.67%
• 6M: 1.15%
• 1Y: 4.59%
• 3Y*: 5.56%
• 5Y*: 2.26%
• 10Y*: 2.51%

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

LTPZ vs. VFSTX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
LTPZ PIMCO 15+ Year US TIPS Index ETF	0.53%	4.00%	-4.80%	0.96%	-31.71%	7.02%	24.89%	17.47%	-7.22%	9.07%
VFSTX Vanguard Short-Term Investment-Grade Fund Investor Shares	0.67%	6.75%	4.98%	6.06%	-5.84%	-0.70%	5.16%	5.75%	0.87%	2.02%

Correlation

The correlation between LTPZ and VFSTX is 0.58, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.58
Correlation (3Y) Calculated over the trailing 3-year period	0.62
Correlation (5Y) Calculated over the trailing 5-year period	0.57
Correlation (10Y) Calculated over the trailing 10-year period	0.53
Correlation (All Time) Calculated using the full available price history since Sep 8, 2009	0.52

The correlation between LTPZ and VFSTX shifts across timeframes, from 0.52 (all time) to 0.62 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

LTPZ vs. VFSTX — Risk / Return Rank

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

LTPZ

LTPZ Risk / Return Rank: 15
LTPZ Sharpe Ratio Rank: 16
LTPZ Sortino Ratio Rank: 15
LTPZ Omega Ratio Rank: 14
LTPZ Calmar Ratio Rank: 16
LTPZ Martin Ratio Rank: 15

VFSTX

VFSTX Risk / Return Rank: 75
VFSTX Sharpe Ratio Rank: 71
VFSTX Sortino Ratio Rank: 85
VFSTX Omega Ratio Rank: 81
VFSTX Calmar Ratio Rank: 69
VFSTX Martin Ratio Rank: 67

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.

LTPZ vs. VFSTX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PIMCO 15+ Year US TIPS Index ETF (LTPZ) and Vanguard Short-Term Investment-Grade Fund Investor Shares (VFSTX). 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.

	LTPZ	VFSTX	Difference
Sharpe ratio: Return per unit of total volatility	0.40	1.97	-1.57
Sortino ratio: Return per unit of downside risk	0.63	3.49	-2.86
Omega ratio: Gain probability vs. loss probability	1.07	1.44	-0.37
Calmar ratio: Return relative to maximum drawdown	0.52	2.64	-2.12
Martin ratio: Return relative to average drawdown	1.11	10.21	-9.10

LTPZ vs. VFSTX - Sharpe Ratio Comparison

The current LTPZ Sharpe Ratio is 0.40, which is lower than the VFSTX Sharpe Ratio of 1.97. The chart below compares the historical Sharpe Ratios of LTPZ and VFSTX, 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

LTPZ vs. VFSTX - Drawdown Comparison

The maximum LTPZ drawdown since its inception was -40.99%, which is greater than VFSTX's maximum drawdown of -9.35%. Use the drawdown chart below to compare losses from any high point for LTPZ and VFSTX.

Drawdown Indicators

	LTPZ	VFSTX	Difference
Max Drawdown Largest peak-to-trough decline	-40.99%	-9.35%	-31.64%
Max Drawdown (1Y) Largest decline over 1 year	-7.00%	-1.71%	-5.29%
Max Drawdown (3Y) Largest decline over 3 years	-16.27%	-1.71%	-14.56%
Max Drawdown (5Y) Largest decline over 5 years	-40.99%	-9.35%	-31.64%
Max Drawdown (10Y) Largest decline over 10 years	-40.99%	-9.35%	-31.64%
Current Drawdown Current decline from peak	-32.66%	-0.36%	-32.30%
Average Drawdown Average peak-to-trough decline	-12.44%	-1.12%	-11.32%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.28%	0.44%	+2.84%

Volatility

LTPZ vs. VFSTX - Volatility Comparison

PIMCO 15+ Year US TIPS Index ETF (LTPZ) has a higher volatility of 2.55% compared to Vanguard Short-Term Investment-Grade Fund Investor Shares (VFSTX) at 0.76%. This indicates that LTPZ's price experiences larger fluctuations and is considered to be riskier than VFSTX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LTPZ	VFSTX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.55%	0.76%	+1.79%
Volatility (6M) Calculated over the trailing 6-month period	6.54%	1.68%	+4.86%
Volatility (1Y) Calculated over the trailing 1-year period	9.19%	2.30%	+6.89%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.87%	2.98%	+12.89%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.07%	2.48%	+12.59%

LTPZ vs. VFSTX - Expense Ratio Comparison

Both LTPZ and VFSTX have an expense ratio of 0.20%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

LTPZ vs. VFSTX - Dividend Comparison

LTPZ's dividend yield for the trailing twelve months is around 5.22%, more than VFSTX's 4.61% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
LTPZ PIMCO 15+ Year US TIPS Index ETF	5.22%	4.64%	3.71%	3.71%	8.38%	3.56%	1.42%	1.74%	3.05%	2.25%	2.32%	0.71%
VFSTX Vanguard Short-Term Investment-Grade Fund Investor Shares	4.61%	4.48%	4.06%	3.05%	1.93%	1.70%	2.24%	2.83%	2.68%	2.00%	2.04%	1.99%

Frequently Asked Questions

Can I hold both LTPZ and VFSTX in my portfolio?

LTPZ and VFSTX have a correlation of 0.58, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LTPZ or VFSTX?

LTPZ has higher volatility (2.55%) compared to VFSTX (0.76%). In terms of maximum drawdown, LTPZ dropped -40.99% vs VFSTX's -9.35%.

Which has better risk-adjusted returns?

VFSTX currently has the higher Sharpe Ratio (1.97 vs 0.40), 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.