TDTT vs. VTP
TDTT (FlexShares iBoxx 3-Year Target Duration TIPS Index Fund) and VTP (Vanguard Total Inflation-Protected Securities ETF) are both Inflation-Protected Bonds funds - TDTT tracks the iBoxx 3-Year Target Duration TIPS while VTP tracks the ICE U.S. Treasury Inflation Linked Bond Index. Both are passively managed. Over the past year, TDTT returned 2.98% vs 3.18% for VTP. A 0.77 correlation means they provide meaningful diversification when combined. TDTT charges 0.18%/yr vs 0.05%/yr for VTP.
Performance
TDTT vs. VTP - Performance Comparison
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Returns By Period
In the year-to-date period, TDTT achieves a 1.41% return, which is significantly higher than VTP's 0.86% return.
TDTT
- 1D
- -0.08%
- 1M
- -0.12%
- 6M
- 1.41%
- YTD
- 1.41%
- 1Y
- 2.98%
- 3Y*
- 4.86%
- 5Y*
- 2.66%
- 10Y*
- 3.02%
VTP
- 1D
- -0.08%
- 1M
- -0.62%
- 6M
- 0.58%
- YTD
- 0.86%
- 1Y
- 3.18%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
TDTT vs. VTP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | |
|---|---|---|
TDTT FlexShares iBoxx 3-Year Target Duration TIPS Index Fund | 1.41% | 2.02% |
VTP Vanguard Total Inflation-Protected Securities ETF | 0.86% | 2.46% |
Correlation
The correlation between TDTT and VTP is 0.78, 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 | 0.78 |
Correlation (All Time) Calculated using the full available price history since Jul 9, 2025 | 0.77 |
The correlation between TDTT and VTP has been stable across timeframes, ranging from 0.77 to 0.78 - a consistent structural relationship.
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Return for Risk
TDTT vs. VTP — Risk / Return Rank
TDTT
VTP
TDTT vs. VTP - 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 Total Inflation-Protected Securities ETF (VTP). 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.
| TDTT | VTP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.62 | ||
| Sortino ratioReturn per unit of downside risk | +0.99 | ||
| Omega ratioGain probability vs. loss probability | 1.31 | 1.17 | +0.14 |
| Calmar ratioReturn relative to maximum drawdown | 3.09 | 1.66 | +1.43 |
| Martin ratioReturn relative to average drawdown | 8.74 | 4.69 | +4.05 |
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Drawdowns
TDTT vs. VTP - Drawdown Comparison
The maximum TDTT drawdown since its inception was -6.97%, which is greater than VTP's maximum drawdown of -1.92%. Use the drawdown chart below to compare losses from any high point for TDTT and VTP.
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Drawdown Indicators
| TDTT | VTP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -6.97% | -1.92% | -5.05% |
Max Drawdown (1Y)Largest decline over 1 year | -0.97% | -1.92% | +0.95% |
Max Drawdown (3Y)Largest decline over 3 years | -1.53% | — | — |
Max Drawdown (5Y)Largest decline over 5 years | -6.97% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -6.97% | — | — |
Current DrawdownCurrent decline from peak | -0.53% | -0.97% | +0.44% |
Average DrawdownAverage peak-to-trough decline | -1.59% | -0.53% | -1.06% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.34% | 0.68% | -0.34% |
Volatility
TDTT vs. VTP - Volatility Comparison
The current volatility for FlexShares iBoxx 3-Year Target Duration TIPS Index Fund (TDTT) is 0.81%, while Vanguard Total Inflation-Protected Securities ETF (VTP) has a volatility of 1.19%. This indicates that TDTT experiences smaller price fluctuations and is considered to be less risky than VTP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TDTT | VTP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.81% | 1.19% | -0.38% |
Volatility (6M)Calculated over the trailing 6-month period | 1.43% | 2.47% | -1.04% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.93% | 3.35% | -1.42% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.66% | 3.33% | +0.33% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.38% | 3.33% | +0.05% |
TDTT vs. VTP - Expense Ratio Comparison
TDTT has a 0.18% expense ratio, which is higher than VTP's 0.05% 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. VTP - Dividend Comparison
TDTT's dividend yield for the trailing twelve months is around 5.14%, more than VTP's 2.98% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
TDTT FlexShares iBoxx 3-Year Target Duration TIPS Index Fund | 5.14% | 4.52% | 4.01% | 3.88% | 6.97% | 4.53% | 1.15% | 1.91% | 2.48% | 1.88% | 1.01% |
VTP Vanguard Total Inflation-Protected Securities ETF | 2.98% | 1.56% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
TDTT and VTP have a correlation of 0.78, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VTP has higher volatility (1.19%) compared to TDTT (0.81%). In terms of maximum drawdown, TDTT dropped -6.97% vs VTP's -1.92%.
On 1-year performance, VTP leads with 3.18% vs 2.98% for TDTT. On fees, VTP is cheaper at 0.05% per year. On volatility, TDTT has been the lower-risk option at 0.81%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, VTP has performed better with a 3.18% return vs 2.98%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VTP is cheaper with a 0.05% expense ratio, compared with 0.18% for TDTT.
TDTT has the higher dividend yield at 5.14%, compared with 2.98% for VTP.
TDTT tracks iBoxx 3-Year Target Duration TIPS, while VTP tracks ICE U.S. Treasury Inflation Linked Bond Index. They also come from different issuers: Northern Trust and Vanguard. Their fees differ too: 0.18% for TDTT and 0.05% for VTP.
TDTT currently has the higher Sharpe Ratio (1.57 vs 0.96), 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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