TLT vs. VBISX
TLT (iShares 20+ Year Treasury Bond ETF) and VBISX (Vanguard Short-Term Bond Index Fund) are both funds - TLT is a Government Bonds fund tracking the ICE U.S. Treasury 20+ Year Bond Index, while VBISX is a Short-Term Bond fund managed by Vanguard. Over the past 10 years, TLT returned -1.75%/yr vs 1.77%/yr for VBISX. A 0.65 correlation means they provide meaningful diversification when combined. Both charge a 0.15% expense ratio.
Performance
TLT vs. VBISX - Performance Comparison
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Returns By Period
The year-to-date returns for both stocks are quite close, with TLT having a 0.27% return and VBISX slightly lower at 0.26%. Over the past 10 years, TLT has underperformed VBISX with an annualized return of -1.75%, while VBISX has yielded a comparatively higher 1.77% annualized return.
TLT
- 1D
- -0.24%
- 1M
- 1.54%
- YTD
- 0.27%
- 6M
- 0.45%
- 1Y
- 2.88%
- 3Y*
- -1.38%
- 5Y*
- -6.53%
- 10Y*
- -1.75%
VBISX
- 1D
- 0.20%
- 1M
- 0.24%
- YTD
- 0.26%
- 6M
- 0.79%
- 1Y
- 3.44%
- 3Y*
- 4.18%
- 5Y*
- 1.40%
- 10Y*
- 1.77%
TLT vs. VBISX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
TLT iShares 20+ Year Treasury Bond ETF | 0.27% | 4.25% | -8.05% | 2.77% | -31.23% | -4.60% | 18.15% | 14.12% | -1.61% | 9.18% |
VBISX Vanguard Short-Term Bond Index Fund | 0.26% | 5.67% | 3.66% | 4.54% | -5.61% | -1.35% | 4.63% | 4.78% | 1.27% | 1.10% |
Correlation
The correlation between TLT and VBISX is 0.61, 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 | 0.61 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.67 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.67 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.64 |
Correlation (All Time) Calculated using the full available price history since Jul 26, 2002 | 0.65 |
The correlation between TLT and VBISX has been stable across timeframes, ranging from 0.61 to 0.67 - a consistent structural relationship.
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Return for Risk
TLT vs. VBISX — Risk / Return Rank
TLT
VBISX
TLT vs. VBISX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 20+ Year Treasury Bond ETF (TLT) and Vanguard Short-Term Bond Index Fund (VBISX). 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.
| TLT | VBISX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.34 | ||
| Sortino ratioReturn per unit of downside risk | -2.25 | ||
| Omega ratioGain probability vs. loss probability | 1.06 | 1.33 | -0.28 |
| Calmar ratioReturn relative to maximum drawdown | 0.38 | 2.37 | -1.99 |
| Martin ratioReturn relative to average drawdown | 0.92 | 7.35 | -6.43 |
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Drawdowns
TLT vs. VBISX - Drawdown Comparison
The maximum TLT drawdown since its inception was -48.35%, which is greater than VBISX's maximum drawdown of -8.79%. Use the drawdown chart below to compare losses from any high point for TLT and VBISX.
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Drawdown Indicators
| TLT | VBISX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -48.35% | -8.79% | -39.56% |
Max Drawdown (1Y)Largest decline over 1 year | -7.58% | -1.54% | -6.04% |
Max Drawdown (3Y)Largest decline over 3 years | -19.18% | -1.55% | -17.63% |
Max Drawdown (5Y)Largest decline over 5 years | -43.70% | -8.72% | -34.98% |
Max Drawdown (10Y)Largest decline over 10 years | -48.35% | -8.79% | -39.56% |
Current DrawdownCurrent decline from peak | -40.12% | -0.66% | -39.46% |
Average DrawdownAverage peak-to-trough decline | -13.84% | -0.87% | -12.97% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.14% | 0.50% | +2.64% |
Volatility
TLT vs. VBISX - Volatility Comparison
iShares 20+ Year Treasury Bond ETF (TLT) has a higher volatility of 2.83% compared to Vanguard Short-Term Bond Index Fund (VBISX) at 0.70%. This indicates that TLT's price experiences larger fluctuations and is considered to be riskier than VBISX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TLT | VBISX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.83% | 0.70% | +2.13% |
Volatility (6M)Calculated over the trailing 6-month period | 6.64% | 1.60% | +5.04% |
Volatility (1Y)Calculated over the trailing 1-year period | 9.68% | 2.23% | +7.45% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 15.85% | 2.95% | +12.90% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.91% | 2.39% | +12.52% |
TLT vs. VBISX - Expense Ratio Comparison
Both TLT and VBISX have an expense ratio of 0.15%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
TLT vs. VBISX - Dividend Comparison
TLT's dividend yield for the trailing twelve months is around 4.56%, more than VBISX's 3.90% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TLT iShares 20+ Year Treasury Bond ETF | 4.56% | 4.43% | 4.30% | 3.38% | 2.67% | 1.50% | 1.50% | 2.27% | 2.63% | 2.43% | 2.60% | 2.61% |
VBISX Vanguard Short-Term Bond Index Fund | 3.90% | 3.44% | 3.29% | 2.10% | 1.38% | 1.16% | 1.72% | 2.16% | 1.92% | 1.58% | 1.42% | 1.34% |
Frequently Asked Questions
TLT and VBISX have a correlation of 0.61, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TLT has higher volatility (2.83%) compared to VBISX (0.70%). In terms of maximum drawdown, TLT dropped -48.35% vs VBISX's -8.79%.
VBISX currently has the higher Sharpe Ratio (1.64 vs 0.30), 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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