STIP vs. VTIP
STIP (iShares 0-5 Year TIPS Bond ETF) and VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) are both Inflation-Protected Bonds funds - STIP tracks the Bloomberg US Treasury Inflation-Protected Securities (TIPS) 0-5 Years Index (Series-L) while VTIP tracks the Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index. Both are passively managed. Over the past 10 years, STIP returned 3.07%/yr vs 3.03%/yr for VTIP. Their correlation of 0.90 suggests significant overlap in exposure. STIP charges 0.06%/yr vs 0.03%/yr for VTIP.
Performance
STIP vs. VTIP - Performance Comparison
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Returns By Period
The year-to-date returns for both investments are quite close, with STIP having a 1.33% return and VTIP slightly higher at 1.34%. Both investments have delivered pretty close results over the past 10 years, with STIP having a 3.07% annualized return and VTIP not far behind at 3.03%.
STIP
- 1D
- -0.22%
- 1M
- -0.30%
- YTD
- 1.33%
- 6M
- 1.45%
- 1Y
- 3.64%
- 3Y*
- 4.99%
- 5Y*
- 3.26%
- 10Y*
- 3.07%
VTIP
- 1D
- -0.18%
- 1M
- -0.24%
- YTD
- 1.34%
- 6M
- 1.46%
- 1Y
- 3.64%
- 3Y*
- 5.00%
- 5Y*
- 3.26%
- 10Y*
- 3.03%
STIP vs. VTIP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
STIP iShares 0-5 Year TIPS Bond ETF | 1.33% | 6.03% | 4.77% | 4.63% | -3.02% | 5.68% | 5.18% | 4.89% | 0.54% | 0.74% |
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 1.34% | 6.07% | 4.74% | 4.62% | -2.94% | 5.36% | 4.95% | 4.86% | 0.56% | 0.82% |
Correlation
The correlation between STIP and VTIP is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.96 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.97 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.97 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.93 |
Correlation (All Time) Calculated using the full available price history since Oct 16, 2012 | 0.90 |
The correlation between STIP and VTIP has been stable across timeframes, ranging from 0.90 to 0.97 - a consistent structural relationship.
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Return for Risk
STIP vs. VTIP — Risk / Return Rank
STIP
VTIP
STIP vs. VTIP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 0-5 Year TIPS Bond ETF (STIP) 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.
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.
| STIP | VTIP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.06 | ||
| Sortino ratioReturn per unit of downside risk | +0.11 | ||
| Omega ratioGain probability vs. loss probability | 1.49 | 1.47 | +0.02 |
| Calmar ratioReturn relative to maximum drawdown | 5.04 | 5.12 | -0.08 |
| Martin ratioReturn relative to average drawdown | 19.01 | 18.66 | +0.35 |
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Drawdowns
STIP vs. VTIP - Drawdown Comparison
The maximum STIP drawdown since its inception was -5.50%, smaller than the maximum VTIP drawdown of -6.27%. Use the drawdown chart below to compare losses from any high point for STIP and VTIP.
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Drawdown Indicators
| STIP | VTIP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.50% | -6.27% | +0.77% |
Max Drawdown (1Y)Largest decline over 1 year | -0.73% | -0.71% | -0.02% |
Max Drawdown (3Y)Largest decline over 3 years | -0.95% | -0.98% | +0.03% |
Max Drawdown (5Y)Largest decline over 5 years | -5.50% | -5.50% | 0.00% |
Max Drawdown (10Y)Largest decline over 10 years | -5.50% | -6.27% | +0.77% |
Current DrawdownCurrent decline from peak | -0.73% | -0.71% | -0.02% |
Average DrawdownAverage peak-to-trough decline | -0.99% | -1.04% | +0.05% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.19% | 0.20% | -0.01% |
Volatility
STIP vs. VTIP - Volatility Comparison
iShares 0-5 Year TIPS Bond ETF (STIP) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) have volatilities of 0.65% and 0.65%, 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
| STIP | VTIP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.65% | 0.65% | 0.00% |
Volatility (6M)Calculated over the trailing 6-month period | 1.14% | 1.17% | -0.03% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.54% | 1.58% | -0.04% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.74% | 2.77% | -0.03% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.46% | 2.74% | -0.28% |
STIP vs. VTIP - Expense Ratio Comparison
STIP has a 0.06% expense ratio, which is higher than VTIP'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
STIP vs. VTIP - Dividend Comparison
STIP's dividend yield for the trailing twelve months is around 4.33%, more than VTIP's 3.61% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
STIP iShares 0-5 Year TIPS Bond ETF | 4.33% | 4.11% | 2.62% | 2.84% | 6.04% | 4.15% | 1.40% | 2.06% | 2.44% | 1.59% | 0.89% |
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 3.61% | 3.81% | 2.70% | 2.86% | 6.84% | 4.68% | 1.20% | 1.95% | 2.45% | 1.52% | 0.76% |
Frequently Asked Questions
With a correlation of 0.96, STIP and VTIP 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.
VTIP has higher volatility (0.65%) compared to STIP (0.65%). In terms of maximum drawdown, STIP dropped -5.50% vs VTIP's -6.27%.
On 10-year performance, STIP leads with 3.07% vs 3.03% 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 10-year period, STIP has performed better with a 3.07% return vs 3.03%. 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 0.06% for STIP.
STIP has the higher dividend yield at 4.33%, compared with 3.61% for VTIP.
STIP tracks Bloomberg US Treasury Inflation-Protected Securities (TIPS) 0-5 Years Index (Series-L), while VTIP tracks Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.06% for STIP and 0.03% for VTIP.
STIP currently has the higher Sharpe Ratio (2.38 vs 2.32), 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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