TILT vs. VGIT
Compare and contrast key facts about FlexShares Morningstar US Market Factor Tilt Index Fund (TILT) and Vanguard Intermediate-Term Treasury ETF (VGIT).
TILT and VGIT are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. TILT is a passively managed fund by Northern Trust that tracks the performance of the Morningstar US Market Factor Tilt Index. It was launched on Sep 16, 2011. VGIT is a passively managed fund by Vanguard that tracks the performance of the Barclays U.S. 3-10 Year Government Float Adjusted Index. It was launched on Nov 19, 2009. Both TILT and VGIT are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: TILT or VGIT.
Key characteristics
| TILT | VGIT | |
|---|---|---|
| YTD Return | 9.55% | -0.88% |
| 1Y Return | 30.75% | -0.20% |
| 3Y Return (Ann) | 7.60% | -2.73% |
| 5Y Return (Ann) | 13.56% | 0.08% |
| 10Y Return (Ann) | 11.37% | 1.03% |
| Sharpe Ratio | 2.32 | -0.08 |
| Daily Std Dev | 12.77% | 5.66% |
| Max Drawdown | -38.45% | -16.05% |
| Current Drawdown | 0.00% | -10.69% |
Correlation
The correlation between TILT and VGIT is -0.24. This indicates that the assets' prices tend to move in opposite directions. Negative correlation can be particularly beneficial for diversification and risk management, as one asset may offset the losses of the other during market fluctuations.
Performance
TILT vs. VGIT - Performance Comparison
In the year-to-date period, TILT achieves a 9.55% return, which is significantly higher than VGIT's -0.88% return. Over the past 10 years, TILT has outperformed VGIT with an annualized return of 11.37%, while VGIT has yielded a comparatively lower 1.03% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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TILT vs. VGIT - Expense Ratio Comparison
TILT has a 0.25% expense ratio, which is higher than VGIT's 0.04% 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%.
Risk-Adjusted Performance
TILT vs. VGIT - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for FlexShares Morningstar US Market Factor Tilt Index Fund (TILT) and Vanguard Intermediate-Term Treasury ETF (VGIT). 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.
Dividends
TILT vs. VGIT - Dividend Comparison
TILT's dividend yield for the trailing twelve months is around 1.33%, less than VGIT's 3.10% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TILT FlexShares Morningstar US Market Factor Tilt Index Fund | 1.33% | 1.44% | 1.60% | 1.16% | 1.49% | 1.54% | 1.97% | 1.55% | 1.60% | 1.98% | 1.33% | 0.98% |
VGIT Vanguard Intermediate-Term Treasury ETF | 3.10% | 2.73% | 1.74% | 1.69% | 2.23% | 2.24% | 2.05% | 1.67% | 1.69% | 1.69% | 1.54% | 1.63% |
Drawdowns
TILT vs. VGIT - Drawdown Comparison
The maximum TILT drawdown since its inception was -38.45%, which is greater than VGIT's maximum drawdown of -16.05%. Use the drawdown chart below to compare losses from any high point for TILT and VGIT. For additional features, visit the drawdowns tool.
Volatility
TILT vs. VGIT - Volatility Comparison
FlexShares Morningstar US Market Factor Tilt Index Fund (TILT) has a higher volatility of 3.30% compared to Vanguard Intermediate-Term Treasury ETF (VGIT) at 1.15%. This indicates that TILT's price experiences larger fluctuations and is considered to be riskier than VGIT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.