SDSI vs. VTIP
SDSI (American Century Short Duration Strategic Income ETF) and VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) are both exchange-traded funds - SDSI is a Short-Term Bond fund tracking the Bloomberg U.S. 1-3 Year Government/Credit Bond Index, while VTIP is a Inflation-Protected Bonds fund tracking the Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index. Both are passively managed. Over the past 3 years, SDSI returned 5.77%/yr vs 5.26%/yr for VTIP. A 0.67 correlation means they provide meaningful diversification when combined. SDSI charges 0.33%/yr vs 0.03%/yr for VTIP.
Performance
SDSI vs. VTIP - Performance Comparison
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Returns By Period
In the year-to-date period, SDSI achieves a 1.22% return, which is significantly lower than VTIP's 2.05% return.
SDSI
- 1D
- -0.04%
- 1M
- 0.35%
- YTD
- 1.22%
- 6M
- 1.66%
- 1Y
- 5.27%
- 3Y*
- 5.77%
- 5Y*
- —
- 10Y*
- —
VTIP
- 1D
- 0.00%
- 1M
- 0.04%
- YTD
- 2.05%
- 6M
- 2.03%
- 1Y
- 4.70%
- 3Y*
- 5.26%
- 5Y*
- 3.37%
- 10Y*
- 3.14%
SDSI vs. VTIP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
SDSI American Century Short Duration Strategic Income ETF | 1.22% | 6.54% | 5.63% | 5.88% | 2.05% |
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 2.05% | 6.07% | 4.74% | 4.62% | 0.62% |
Correlation
The correlation between SDSI and VTIP is 0.36, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.36 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.63 |
Correlation (All Time) Calculated using the full available price history since Oct 14, 2022 | 0.67 |
Over the past year, the correlation between SDSI and VTIP has dropped to 0.36 - well below their long-term average of 0.67, suggesting their price drivers have been diverging.
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Return for Risk
SDSI vs. VTIP — Risk / Return Rank
SDSI
VTIP
SDSI vs. VTIP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for American Century Short Duration Strategic Income ETF (SDSI) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP). 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.
| SDSI | VTIP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.10 | ||
| Sortino ratioReturn per unit of downside risk | -0.35 | ||
| Omega ratioGain probability vs. loss probability | 1.66 | 1.67 | 0.00 |
| Calmar ratioReturn relative to maximum drawdown | 4.53 | 6.75 | -2.22 |
| Martin ratioReturn relative to average drawdown | 21.22 | 26.06 | -4.84 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| SDSI | VTIP | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 3.25 | 3.15 | +0.10 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | — | 1.22 | — |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 1.15 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 2.60 | 0.89 | +1.70 |
Drawdowns
SDSI vs. VTIP - Drawdown Comparison
The maximum SDSI drawdown since its inception was -1.29%, smaller than the maximum VTIP drawdown of -6.27%. Use the drawdown chart below to compare losses from any high point for SDSI and VTIP.
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Drawdown Indicators
| SDSI | VTIP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -1.29% | -6.27% | +4.98% |
Max Drawdown (1Y)Largest decline over 1 year | -1.17% | -0.70% | -0.47% |
Max Drawdown (3Y)Largest decline over 3 years | -1.29% | -0.98% | -0.31% |
Max Drawdown (5Y)Largest decline over 5 years | — | -5.50% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -6.27% | — |
Current DrawdownCurrent decline from peak | -0.07% | -0.02% | -0.05% |
Average DrawdownAverage peak-to-trough decline | -0.24% | -1.04% | +0.80% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.25% | 0.18% | +0.07% |
Volatility
SDSI vs. VTIP - Volatility Comparison
American Century Short Duration Strategic Income ETF (SDSI) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) have volatilities of 0.41% and 0.43%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SDSI | VTIP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.41% | 0.43% | -0.02% |
Volatility (6M)Calculated over the trailing 6-month period | 1.14% | 1.02% | +0.12% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.63% | 1.50% | +0.13% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.28% | 2.77% | -0.49% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.28% | 2.74% | -0.46% |
SDSI vs. VTIP - Expense Ratio Comparison
SDSI has a 0.33% expense ratio, which is higher than VTIP's 0.03% expense ratio.
Dividends
SDSI vs. VTIP - Dividend Comparison
SDSI's dividend yield for the trailing twelve months is around 4.42%, more than VTIP's 3.58% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
SDSI American Century Short Duration Strategic Income ETF | 4.42% | 4.91% | 5.49% | 5.37% | 0.98% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 3.58% | 3.81% | 2.70% | 2.86% | 6.84% | 4.68% | 1.20% | 1.95% | 2.45% | 1.52% | 0.76% |
Frequently Asked Questions
SDSI and VTIP have a correlation of 0.36, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VTIP has higher volatility (0.43%) compared to SDSI (0.41%). In terms of maximum drawdown, SDSI dropped -1.29% vs VTIP's -6.27%.
On 3-year performance, SDSI leads with 5.77% vs 5.26% for VTIP. On fees, VTIP is cheaper at 0.03% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, SDSI has performed better with a 5.77% return vs 5.26%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VTIP is cheaper with a 0.03% expense ratio, compared with 0.33% for SDSI.
SDSI has the higher dividend yield at 4.42%, compared with 3.58% for VTIP.
SDSI is categorized as Short-Term Bond, while VTIP is Inflation-Protected Bonds. SDSI tracks Bloomberg U.S. 1-3 Year Government/Credit Bond Index, while VTIP tracks Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index. They also come from different issuers: American Century and Vanguard. Their fees differ too: 0.33% for SDSI and 0.03% for VTIP.
SDSI currently has the higher Sharpe Ratio (3.25 vs 3.15), 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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