TDTT vs. VTIP
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
Loading charts...
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%
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.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
TDTT vs. VTIP — Risk / Return Rank
TDTT
VTIP
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 ratioReturn per unit of total volatility | -0.61 | ||
| Sortino ratioReturn per unit of downside risk | -1.16 | ||
| Omega ratioGain probability vs. loss probability | 1.51 | 1.67 | -0.15 |
| Calmar ratioReturn relative to maximum drawdown | 5.17 | 6.75 | -1.58 |
| Martin ratioReturn 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. | |||
Loading charts...
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.
Loading charts...
Drawdown Indicators
| TDTT | VTIP | Difference | |
|---|---|---|---|
Max DrawdownLargest 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 DrawdownCurrent decline from peak | -0.14% | -0.02% | -0.12% |
Average DrawdownAverage peak-to-trough decline | -1.60% | -1.04% | -0.56% |
Ulcer IndexDepth 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.
Loading charts...
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
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.
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%.
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.
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.
VTIP is cheaper with a 0.03% expense ratio, compared with 0.18% for TDTT.
TDTT has the higher dividend yield at 4.54%, compared with 3.58% for 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.
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.
Find the right allocation for TDTT and VTIP
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer