TIP vs. VGSH
Compare and contrast key facts about iShares TIPS Bond ETF (TIP) and Vanguard Short-Term Treasury ETF (VGSH).
TIP and VGSH are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. TIP is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. Treasury Inflation Protected Securities (TIPS) Index (Series-L). It was launched on Dec 4, 2003. VGSH is a passively managed fund by Vanguard that tracks the performance of the Barclays U.S. 1-3 Year Government Float Adjusted Index. It was launched on Nov 19, 2009. Both TIP and VGSH 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: TIP or VGSH.
Performance
TIP vs. VGSH - Performance Comparison
Returns By Period
In the year-to-date period, TIP achieves a 3.05% return, which is significantly lower than VGSH's 3.53% return. Over the past 10 years, TIP has outperformed VGSH with an annualized return of 2.09%, while VGSH has yielded a comparatively lower 1.27% annualized return.
TIP
3.05%
0.17%
3.32%
6.55%
1.94%
2.09%
VGSH
3.53%
0.03%
3.10%
5.18%
1.29%
1.27%
Key characteristics
| TIP | VGSH | |
|---|---|---|
| Sharpe Ratio | 1.33 | 2.77 |
| Sortino Ratio | 1.97 | 4.44 |
| Omega Ratio | 1.24 | 1.59 |
| Calmar Ratio | 0.54 | 2.68 |
| Martin Ratio | 5.48 | 13.55 |
| Ulcer Index | 1.20% | 0.38% |
| Daily Std Dev | 4.92% | 1.87% |
| Max Drawdown | -14.56% | -5.70% |
| Current Drawdown | -6.64% | -0.68% |
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TIP vs. VGSH - Expense Ratio Comparison
TIP has a 0.19% expense ratio, which is higher than VGSH'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%.
Correlation
The correlation between TIP and VGSH is 0.54, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Risk-Adjusted Performance
TIP vs. VGSH - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares TIPS Bond ETF (TIP) and Vanguard Short-Term Treasury ETF (VGSH). 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
TIP vs. VGSH - Dividend Comparison
TIP's dividend yield for the trailing twelve months is around 2.39%, less than VGSH's 4.14% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TIP iShares TIPS Bond ETF | 2.39% | 2.73% | 6.96% | 4.28% | 1.17% | 1.75% | 2.71% | 2.07% | 1.48% | 0.34% | 1.67% | 1.15% |
VGSH Vanguard Short-Term Treasury ETF | 4.14% | 3.32% | 1.15% | 0.66% | 1.75% | 2.28% | 1.79% | 1.10% | 0.84% | 0.71% | 0.46% | 0.34% |
Drawdowns
TIP vs. VGSH - Drawdown Comparison
The maximum TIP drawdown since its inception was -14.56%, which is greater than VGSH's maximum drawdown of -5.70%. Use the drawdown chart below to compare losses from any high point for TIP and VGSH. For additional features, visit the drawdowns tool.
Volatility
TIP vs. VGSH - Volatility Comparison
iShares TIPS Bond ETF (TIP) has a higher volatility of 1.21% compared to Vanguard Short-Term Treasury ETF (VGSH) at 0.45%. This indicates that TIP's price experiences larger fluctuations and is considered to be riskier than VGSH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.