VBISX vs. TLT
VBISX (Vanguard Short-Term Bond Index Fund) and TLT (iShares 20+ Year Treasury Bond ETF) are both funds - VBISX is a Short-Term Bond fund managed by Vanguard, while TLT is a Government Bonds fund tracking the ICE U.S. Treasury 20+ Year Bond Index. Over the past 10 years, VBISX returned 1.77%/yr vs -1.75%/yr for TLT. A 0.65 correlation means they provide meaningful diversification when combined. Both charge a 0.15% expense ratio.
Performance
VBISX vs. TLT - Performance Comparison
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Returns By Period
The year-to-date returns for both investments are quite close, with VBISX having a 0.26% return and TLT slightly higher at 0.27%. Over the past 10 years, VBISX has outperformed TLT with an annualized return of 1.77%, while TLT has yielded a comparatively lower -1.75% annualized return.
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
- 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 vs. TLT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
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% |
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% |
Correlation
The correlation between VBISX and TLT 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 VBISX and TLT has been stable across timeframes, ranging from 0.61 to 0.67 - a consistent structural relationship.
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Return for Risk
VBISX vs. TLT — Risk / Return Rank
VBISX
TLT
VBISX vs. TLT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Bond Index Fund (VBISX) and iShares 20+ Year Treasury Bond ETF (TLT). 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.
| VBISX | TLT | 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 | 1.33 | 1.06 | +0.28 |
| Calmar ratioReturn relative to maximum drawdown | 2.37 | 0.38 | +1.99 |
| Martin ratioReturn relative to average drawdown | 7.35 | 0.92 | +6.43 |
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Drawdowns
VBISX vs. TLT - Drawdown Comparison
The maximum VBISX drawdown since its inception was -8.79%, smaller than the maximum TLT drawdown of -48.35%. Use the drawdown chart below to compare losses from any high point for VBISX and TLT.
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Drawdown Indicators
| VBISX | TLT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -8.79% | -48.35% | +39.56% |
Max Drawdown (1Y)Largest decline over 1 year | -1.54% | -7.58% | +6.04% |
Max Drawdown (3Y)Largest decline over 3 years | -1.55% | -19.18% | +17.63% |
Max Drawdown (5Y)Largest decline over 5 years | -8.72% | -43.70% | +34.98% |
Max Drawdown (10Y)Largest decline over 10 years | -8.79% | -48.35% | +39.56% |
Current DrawdownCurrent decline from peak | -0.66% | -40.12% | +39.46% |
Average DrawdownAverage peak-to-trough decline | -0.87% | -13.84% | +12.97% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.50% | 3.14% | -2.64% |
Volatility
VBISX vs. TLT - Volatility Comparison
The current volatility for Vanguard Short-Term Bond Index Fund (VBISX) is 0.70%, while iShares 20+ Year Treasury Bond ETF (TLT) has a volatility of 2.83%. This indicates that VBISX experiences smaller price fluctuations and is considered to be less risky than TLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VBISX | TLT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.70% | 2.83% | -2.13% |
Volatility (6M)Calculated over the trailing 6-month period | 1.60% | 6.64% | -5.04% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.23% | 9.68% | -7.45% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.95% | 15.85% | -12.90% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.39% | 14.91% | -12.52% |
VBISX vs. TLT - Expense Ratio Comparison
Both VBISX and TLT 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
VBISX vs. TLT - Dividend Comparison
VBISX's dividend yield for the trailing twelve months is around 3.90%, less than TLT's 4.56% 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
VBISX and TLT 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, VBISX dropped -8.79% vs TLT's -48.35%.
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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