TDTT vs. VTIP

Last updated Jun 4, 2026

TDTT (FlexShares iBoxx 3-Year Target Duration TIPS Index Fund) and VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) are both Inflation-Protected Bonds funds - TDTT tracks the iBoxx 3-Year Target Duration TIPS 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, TDTT returned 3.11%/yr vs 3.14%/yr for VTIP. Their correlation of 0.85 suggests significant overlap in exposure. TDTT charges 0.18%/yr vs 0.03%/yr for VTIP.

Performance

TDTT vs. VTIP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares iBoxx 3-Year Target Duration TIPS Index Fund (TDTT) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TDTT achieves a 1.81% return, which is significantly lower than VTIP's 2.05% return. Both investments have delivered pretty close results over the past 10 years, with TDTT having a 3.11% annualized return and VTIP not far ahead at 3.14%.

TDTT

• 1D: 0.00%
• 1M: -0.06%
• YTD: 1.81%
• 6M: 1.77%
• 1Y: 4.65%
• 3Y*: 5.00%
• 5Y*: 2.85%
• 10Y*: 3.11%

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%

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

TDTT vs. VTIP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TDTT FlexShares iBoxx 3-Year Target Duration TIPS Index Fund	1.81%	6.67%	3.96%	4.40%	-4.58%	5.49%	6.84%	5.74%	0.25%	0.43%
VTIP Vanguard Short-Term Inflation-Protected Securities ETF	2.05%	6.07%	4.74%	4.62%	-2.94%	5.36%	4.95%	4.86%	0.56%	0.82%

Correlation

The correlation between TDTT and VTIP is 0.89, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.89
Correlation (3Y) Calculated over the trailing 3-year period	0.93
Correlation (5Y) Calculated over the trailing 5-year period	0.95
Correlation (10Y) Calculated over the trailing 10-year period	0.89
Correlation (All Time) Calculated using the full available price history since Oct 17, 2012	0.85

The correlation between TDTT and VTIP shifts across timeframes, from 0.85 (all time) to 0.95 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

TDTT vs. VTIP — Risk / Return Rank

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

TDTT

TDTT Risk / Return Rank: 84
TDTT Sharpe Ratio Rank: 78
TDTT Sortino Ratio Rank: 90
TDTT Omega Ratio Rank: 84
TDTT Calmar Ratio Rank: 88
TDTT Martin Ratio Rank: 82

VTIP

VTIP Risk / Return Rank: 93
VTIP Sharpe Ratio Rank: 90
VTIP Sortino Ratio Rank: 95
VTIP Omega Ratio Rank: 93
VTIP Calmar Ratio Rank: 93
VTIP Martin Ratio Rank: 93

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.

TDTT vs. VTIP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares iBoxx 3-Year Target Duration TIPS Index Fund (TDTT) 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.

	TDTT	VTIP	Difference
Sharpe ratio Return per unit of total volatility	2.54	3.15	-0.61
Sortino ratio Return per unit of downside risk	4.20	5.36	-1.16
Omega ratio Gain probability vs. loss probability	1.51	1.67	-0.15
Calmar ratio Return relative to maximum drawdown	5.17	6.75	-1.58
Martin ratio Return relative to average drawdown	16.59	26.06	-9.47
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TDTT vs. VTIP - Sharpe Ratio Comparison

The current TDTT Sharpe Ratio is 2.54, which is comparable to the VTIP Sharpe Ratio of 3.15. The chart below compares the historical Sharpe Ratios of TDTT and VTIP, 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

	TDTT	VTIP	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.54	3.15	-0.61
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.78	1.22	-0.44
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.92	1.15	-0.23
Sharpe Ratio (All Time) Calculated using the full available price history	0.69	0.89	-0.20

Drawdowns

TDTT vs. VTIP - Drawdown Comparison

The maximum TDTT drawdown since its inception was -6.97%, which is greater than VTIP's maximum drawdown of -6.27%. Use the drawdown chart below to compare losses from any high point for TDTT and VTIP.

Drawdown Indicators

	TDTT	VTIP	Difference
Max Drawdown Largest peak-to-trough decline	-6.97%	-6.27%	-0.70%
Max Drawdown (1Y) Largest decline over 1 year	-0.90%	-0.70%	-0.20%
Max Drawdown (3Y) Largest decline over 3 years	-1.53%	-0.98%	-0.55%
Max Drawdown (5Y) Largest decline over 5 years	-6.97%	-5.50%	-1.47%
Max Drawdown (10Y) Largest decline over 10 years	-6.97%	-6.27%	-0.70%
Current Drawdown Current decline from peak	-0.14%	-0.02%	-0.12%
Average Drawdown Average peak-to-trough decline	-1.60%	-1.04%	-0.56%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.28%	0.18%	+0.10%

Volatility

TDTT vs. VTIP - Volatility Comparison

FlexShares iBoxx 3-Year Target Duration TIPS Index Fund (TDTT) has a higher volatility of 0.46% compared to Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) at 0.43%. This indicates that TDTT's price experiences larger fluctuations and is considered to be riskier than VTIP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TDTT	VTIP	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.46%	0.43%	+0.03%
Volatility (6M) Calculated over the trailing 6-month period	1.21%	1.02%	+0.19%
Volatility (1Y) Calculated over the trailing 1-year period	1.85%	1.50%	+0.35%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.67%	2.77%	+0.90%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.38%	2.74%	+0.64%

TDTT vs. VTIP - Expense Ratio Comparison

TDTT has a 0.18% 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

TDTT vs. VTIP - Dividend Comparison

TDTT's dividend yield for the trailing twelve months is around 4.54%, more than VTIP's 3.58% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
TDTT FlexShares iBoxx 3-Year Target Duration TIPS Index Fund	4.54%	4.52%	4.01%	3.88%	6.97%	4.53%	1.15%	1.91%	2.48%	1.88%	1.01%
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

Can I hold both TDTT and VTIP in my portfolio?

TDTT and VTIP have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TDTT or VTIP?

TDTT has higher volatility (0.46%) compared to VTIP (0.43%). In terms of maximum drawdown, TDTT dropped -6.97% vs VTIP's -6.27%.

Which ETF is better, TDTT or VTIP?

On 10-year performance, VTIP leads with 3.14% vs 3.11% for TDTT. 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.

Which ETF has performed better, TDTT or VTIP?

Over the 10-year period, VTIP has performed better with a 3.14% return vs 3.11%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TDTT or VTIP?

VTIP is cheaper with a 0.03% expense ratio, compared with 0.18% for TDTT.

Which ETF pays a higher dividend yield, TDTT or VTIP?

TDTT has the higher dividend yield at 4.54%, compared with 3.58% for VTIP.

What is the main difference between TDTT and VTIP?

TDTT tracks iBoxx 3-Year Target Duration TIPS, while VTIP tracks Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index. They also come from different issuers: Northern Trust and Vanguard. Their fees differ too: 0.18% for TDTT and 0.03% for VTIP.

Which has better risk-adjusted returns?

VTIP currently has the higher Sharpe Ratio (3.15 vs 2.54), 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.