ULST vs. VTIP

Last updated Jun 4, 2026

ULST (State Street Ultra Short Term Bond ETF) and VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) are both exchange-traded funds - ULST is a Ultrashort Bond fund tracking the Bloomberg US Treasury Bellwether 3 Month Index, while VTIP is a Inflation-Protected Bonds fund tracking the Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index. Both are passively managed. Over the past 10 years, ULST returned 2.67%/yr vs 3.14%/yr for VTIP. At a 0.17 correlation, their price movements are largely independent. ULST charges 0.20%/yr vs 0.03%/yr for VTIP.

Performance

ULST vs. VTIP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street Ultra Short Term Bond ETF (ULST) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ULST achieves a 1.24% return, which is significantly lower than VTIP's 2.05% return. Over the past 10 years, ULST has underperformed VTIP with an annualized return of 2.67%, while VTIP has yielded a comparatively higher 3.14% annualized return.

ULST

• 1D: -0.02%
• 1M: 0.33%
• YTD: 1.24%
• 6M: 1.57%
• 1Y: 3.99%
• 3Y*: 4.92%
• 5Y*: 3.51%
• 10Y*: 2.67%

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%

*Multi-year figures are annualized to reflect compound growth (CAGR)

ULST vs. VTIP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ULST State Street Ultra Short Term Bond ETF	1.24%	4.80%	5.23%	5.60%	0.87%	0.25%	1.45%	3.23%	2.04%	1.19%
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 ULST and VTIP is 0.39, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.39
Correlation (3Y) Calculated over the trailing 3-year period	0.48
Correlation (5Y) Calculated over the trailing 5-year period	0.32
Correlation (10Y) Calculated over the trailing 10-year period	0.21
Correlation (All Time) Calculated using the full available price history since Oct 11, 2013	0.17

Over the past year, ULST and VTIP have become more correlated (0.39) than their long-term average of 0.17, meaning their price movements have been converging.

Return for Risk

ULST vs. VTIP — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ULST

ULST Risk / Return Rank: 99
ULST Sharpe Ratio Rank: 98
ULST Sortino Ratio Rank: 99
ULST Omega Ratio Rank: 99
ULST Calmar Ratio Rank: 98
ULST Martin Ratio Rank: 99

VTIP

VTIP Risk / Return Rank: 93
VTIP Sharpe Ratio Rank: 90
VTIP Sortino Ratio Rank: 95
VTIP Omega Ratio Rank: 93
VTIP Calmar Ratio Rank: 93
VTIP Martin Ratio Rank: 93

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ULST vs. VTIP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Ultra Short Term Bond ETF (ULST) 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.

	ULST	VTIP	Difference
Sharpe ratio: Return per unit of total volatility	6.14	3.15	+2.99
Sortino ratio: Return per unit of downside risk	12.30	5.36	+6.94
Omega ratio: Gain probability vs. loss probability	2.77	1.67	+1.10
Calmar ratio: Return relative to maximum drawdown	16.92	6.75	+10.17
Martin ratio: Return relative to average drawdown	87.49	26.06	+61.43
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ULST vs. VTIP - Sharpe Ratio Comparison

The current ULST Sharpe Ratio is 6.14, which is higher than the VTIP Sharpe Ratio of 3.15. The chart below compares the historical Sharpe Ratios of ULST and VTIP, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	ULST	VTIP	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	6.14	3.15	+2.99
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	3.67	1.22	+2.45
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.86	1.15	+0.70
Sharpe Ratio (All Time) Calculated using the full available price history	1.50	0.89	+0.60

Drawdowns

ULST vs. VTIP - Drawdown Comparison

The maximum ULST drawdown since its inception was -6.20%, roughly equal to the maximum VTIP drawdown of -6.27%. Use the drawdown chart below to compare losses from any high point for ULST and VTIP.

Drawdown Indicators

	ULST	VTIP	Difference
Max Drawdown Largest peak-to-trough decline	-6.20%	-6.27%	+0.07%
Max Drawdown (1Y) Largest decline over 1 year	-0.24%	-0.70%	+0.46%
Max Drawdown (3Y) Largest decline over 3 years	-0.54%	-0.98%	+0.44%
Max Drawdown (5Y) Largest decline over 5 years	-1.22%	-5.50%	+4.28%
Max Drawdown (10Y) Largest decline over 10 years	-6.20%	-6.27%	+0.07%
Current Drawdown Current decline from peak	-0.05%	-0.02%	-0.03%
Average Drawdown Average peak-to-trough decline	-0.16%	-1.04%	+0.88%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.05%	0.18%	-0.13%

Volatility

ULST vs. VTIP - Volatility Comparison

The current volatility for State Street Ultra Short Term Bond ETF (ULST) is 0.18%, while Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) has a volatility of 0.43%. This indicates that ULST experiences smaller price fluctuations and is considered to be less risky than VTIP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ULST	VTIP	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.18%	0.43%	-0.25%
Volatility (6M) Calculated over the trailing 6-month period	0.43%	1.02%	-0.59%
Volatility (1Y) Calculated over the trailing 1-year period	0.65%	1.50%	-0.85%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.96%	2.77%	-1.81%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.45%	2.74%	-1.29%

ULST vs. VTIP - Expense Ratio Comparison

ULST has a 0.20% 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

ULST vs. VTIP - Dividend Comparison

ULST's dividend yield for the trailing twelve months is around 4.29%, more than VTIP's 3.58% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ULST State Street Ultra Short Term Bond ETF	4.29%	4.46%	5.03%	4.45%	1.70%	0.54%	1.34%	2.56%	2.13%	1.21%	0.93%	0.37%
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%	0.00%

Frequently Asked Questions

Can I hold both ULST and VTIP in my portfolio?

ULST and VTIP have a correlation of 0.39, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ULST or VTIP?

VTIP has higher volatility (0.43%) compared to ULST (0.18%). In terms of maximum drawdown, ULST dropped -6.20% vs VTIP's -6.27%.

Which ETF is better, ULST or VTIP?

On 10-year performance, VTIP leads with 3.14% vs 2.67% for ULST. On fees, VTIP is cheaper at 0.03% per year. On volatility, ULST has been the lower-risk option at 0.18%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ULST or VTIP?

Over the 10-year period, VTIP has performed better with a 3.14% return vs 2.67%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ULST or VTIP?

VTIP is cheaper with a 0.03% expense ratio, compared with 0.20% for ULST.

Which ETF pays a higher dividend yield, ULST or VTIP?

ULST has the higher dividend yield at 4.29%, compared with 3.58% for VTIP.

What is the main difference between ULST and VTIP?

ULST is categorized as Ultrashort Bond, while VTIP is Inflation-Protected Bonds. ULST tracks Bloomberg US Treasury Bellwether 3 Month Index, while VTIP tracks Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index. They also come from different issuers: State Street and Vanguard. Their fees differ too: 0.20% for ULST and 0.03% for VTIP.

Which has better risk-adjusted returns?

ULST currently has the higher Sharpe Ratio (6.14 vs 3.15), 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.