VBIPX vs. IEI
VBIPX (Vanguard Short-Term Bond Index Fund Institutional Plus) and IEI (iShares 3-7 Year Treasury Bond ETF) are both funds - VBIPX is a Total Bond Market fund managed by Vanguard, while IEI is a Government Bonds fund tracking the ICE U.S. Treasury 3-7 Year Bond Index. Over the past 10 years, VBIPX returned 1.81%/yr vs 1.20%/yr for IEI. Their correlation of 0.84 means they have usually moved in the same direction. VBIPX charges 0.04%/yr vs 0.15%/yr for IEI.
Performance
VBIPX vs. IEI - Performance Comparison
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Returns By Period
In the year-to-date period, VBIPX achieves a 0.06% return, which is significantly higher than IEI's -0.51% return. Over the past 10 years, VBIPX has outperformed IEI with an annualized return of 1.81%, while IEI has yielded a comparatively lower 1.20% annualized return.
VBIPX
- 1D
- -0.10%
- 1M
- -0.39%
- 6M
- 0.01%
- YTD
- 0.06%
- 1Y
- 2.03%
- 3Y*
- 4.34%
- 5Y*
- 1.44%
- 10Y*
- 1.81%
- ALL TIME*
- 1.67%
IEI
- 1D
- 0.10%
- 1M
- -0.44%
- 6M
- -0.38%
- YTD
- -0.51%
- 1Y
- 1.27%
- 3Y*
- 3.73%
- 5Y*
- 0.04%
- 10Y*
- 1.20%
- ALL TIME*
- 2.83%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $171.19M | $154.03M | $149.91M | |
| $0.00 | $0.00 | $0.00 |
VBIPX vs. IEI - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VBIPX Vanguard Short-Term Bond Index Fund Institutional Plus | 0.06% | 6.12% | 3.78% | 4.45% | -5.68% | -1.17% | 4.73% | 4.89% | 1.38% | 1.21% |
IEI iShares 3-7 Year Treasury Bond ETF | -0.51% | 6.96% | 1.81% | 4.42% | -9.51% | -2.54% | 6.95% | 5.71% | 1.36% | 1.22% |
Correlation
The correlation between VBIPX and IEI is 0.85, meaning they have usually moved in the same direction, including during past declines.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.85 |
Correlation (3Y) Balances recent behavior with more history. | 0.88 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.91 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.86 |
Correlation (All Time) Calculated using the full available price history since Sep 27, 2011 | 0.84 |
The correlation between VBIPX and IEI has been stable across timeframes, ranging from 0.84 to 0.91 - a consistent structural relationship.
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Return for Risk
VBIPX vs. IEI — Risk / Return Rank
VBIPX
IEI
VBIPX vs. IEI - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Bond Index Fund Institutional Plus (VBIPX) and iShares 3-7 Year Treasury Bond ETF (IEI). 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.
| VBIPX | IEI | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.75 | ||
| Sortino ratioReturn per unit of downside risk | +1.32 | ||
| Omega ratioGain probability vs. loss probability | 1.23 | 1.07 | +0.15 |
| Calmar ratioReturn relative to maximum drawdown | 1.71 | 0.51 | +1.20 |
| Martin ratioReturn relative to average drawdown | 4.84 | 1.16 | +3.68 |
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Drawdowns
VBIPX vs. IEI - Drawdown Comparison
The maximum VBIPX drawdown since its inception was -8.72%, smaller than the maximum IEI drawdown of -14.60%. Use the drawdown chart below to compare losses from any high point for VBIPX and IEI.
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Drawdown Indicators
| VBIPX | IEI | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -8.72% | -14.60% | +5.88% |
Max Drawdown (1Y)Largest decline over 1 year | -1.54% | -2.50% | +0.96% |
Max Drawdown (3Y)Largest decline over 3 years | -1.54% | -3.66% | +2.12% |
Max Drawdown (5Y)Largest decline over 5 years | -8.52% | -13.63% | +5.11% |
Max Drawdown (10Y)Largest decline over 10 years | -8.72% | -14.60% | +5.88% |
Current DrawdownCurrent decline from peak | -0.87% | -1.95% | +1.08% |
Average DrawdownAverage peak-to-trough decline | -1.18% | -2.67% | +1.49% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.54% | 1.10% | -0.56% |
Volatility
VBIPX vs. IEI - Volatility Comparison
The current volatility for Vanguard Short-Term Bond Index Fund Institutional Plus (VBIPX) is 0.49%, while iShares 3-7 Year Treasury Bond ETF (IEI) has a volatility of 0.76%. This indicates that VBIPX experiences smaller price fluctuations and is considered to be less risky than IEI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VBIPX | IEI | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.49% | 0.76% | -0.27% |
Volatility (6M)Calculated over the trailing 6-month period | 1.71% | 2.36% | -0.65% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.24% | 2.89% | -0.65% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.97% | 4.79% | -1.82% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.41% | 3.93% | -1.52% |
VBIPX vs. IEI - Expense Ratio Comparison
VBIPX has a 0.04% expense ratio, which is lower than IEI's 0.15% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
VBIPX vs. IEI - Dividend Comparison
VBIPX's dividend yield for the trailing twelve months is around 3.72%, which matches IEI's 3.71% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IEI iShares 3-7 Year Treasury Bond ETF | 3.71% | 3.48% | 3.18% | 2.36% | 1.37% | 0.73% | 1.12% | 2.01% | 1.95% | 1.51% | 1.33% | 1.39% |
VBIPX Vanguard Short-Term Bond Index Fund Institutional Plus | 3.72% | 3.86% | 3.40% | 2.01% | 1.40% | 1.26% | 1.82% | 2.27% | 2.04% | 1.69% | 1.53% | 1.46% |
Frequently Asked Questions
VBIPX and IEI have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IEI has higher volatility (0.76%) compared to VBIPX (0.49%). In terms of maximum drawdown, VBIPX dropped -8.72% vs IEI's -14.60%.
VBIPX currently has the higher Sharpe Ratio (1.19 vs 0.44), 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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