VBIPX vs. TIP
Compare and contrast key facts about Vanguard Short-Term Bond Index Fund Institutional Plus (VBIPX) and iShares TIPS Bond ETF (TIP).
VBIPX is managed by Vanguard. It was launched on Sep 29, 2011. 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.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VBIPX or TIP.
Key characteristics
| VBIPX | TIP | |
|---|---|---|
| YTD Return | 3.35% | 3.24% |
| 1Y Return | 6.38% | 7.38% |
| 3Y Return (Ann) | 0.54% | -2.21% |
| 5Y Return (Ann) | 1.26% | 2.17% |
| 10Y Return (Ann) | 1.55% | 2.12% |
| Sharpe Ratio | 2.06 | 1.28 |
| Sortino Ratio | 3.29 | 1.89 |
| Omega Ratio | 1.42 | 1.23 |
| Calmar Ratio | 1.17 | 0.50 |
| Martin Ratio | 10.05 | 6.07 |
| Ulcer Index | 0.60% | 1.07% |
| Daily Std Dev | 2.94% | 5.04% |
| Max Drawdown | -8.87% | -14.56% |
| Current Drawdown | -1.25% | -6.46% |
Correlation
The correlation between VBIPX and TIP is 0.62, 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.
Performance
VBIPX vs. TIP - Performance Comparison
The year-to-date returns for both stocks are quite close, with VBIPX having a 3.35% return and TIP slightly lower at 3.24%. Over the past 10 years, VBIPX has underperformed TIP with an annualized return of 1.55%, while TIP has yielded a comparatively higher 2.12% 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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VBIPX vs. TIP - Expense Ratio Comparison
VBIPX has a 0.04% expense ratio, which is lower than TIP's 0.19% 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%.
Risk-Adjusted Performance
VBIPX vs. TIP - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Bond Index Fund Institutional Plus (VBIPX) and iShares TIPS Bond ETF (TIP). 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
VBIPX vs. TIP - Dividend Comparison
VBIPX's dividend yield for the trailing twelve months is around 3.26%, more than TIP's 2.39% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VBIPX Vanguard Short-Term Bond Index Fund Institutional Plus | 3.26% | 2.43% | 1.47% | 1.22% | 1.82% | 2.27% | 2.04% | 1.56% | 1.51% | 1.37% | 1.37% | 1.27% |
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% |
Drawdowns
VBIPX vs. TIP - Drawdown Comparison
The maximum VBIPX drawdown since its inception was -8.87%, smaller than the maximum TIP drawdown of -14.56%. Use the drawdown chart below to compare losses from any high point for VBIPX and TIP. For additional features, visit the drawdowns tool.
Volatility
VBIPX vs. TIP - Volatility Comparison
The current volatility for Vanguard Short-Term Bond Index Fund Institutional Plus (VBIPX) is 0.68%, while iShares TIPS Bond ETF (TIP) has a volatility of 1.20%. This indicates that VBIPX experiences smaller price fluctuations and is considered to be less risky than TIP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.