VBITX vs. IEF
VBITX (Vanguard Short-Term Bond Index Fund Institutional Shares) and IEF (iShares 7-10 Year Treasury Bond ETF) are both funds - VBITX is a Total Bond Market fund managed by Vanguard, while IEF is a Government Bonds fund tracking the ICE U.S. Treasury 7-10 Year Bond Index. Over the past 10 years, VBITX returned 1.89%/yr vs 0.67%/yr for IEF. A 0.77 correlation means they provide meaningful diversification when combined. VBITX charges 0.05%/yr vs 0.15%/yr for IEF.
Performance
VBITX vs. IEF - Performance Comparison
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Returns By Period
In the year-to-date period, VBITX achieves a 0.21% return, which is significantly higher than IEF's -0.53% return. Over the past 10 years, VBITX has outperformed IEF with an annualized return of 1.89%, while IEF has yielded a comparatively lower 0.67% annualized return.
VBITX
- 1D
- -0.10%
- 1M
- -0.05%
- YTD
- 0.21%
- 6M
- 0.55%
- 1Y
- 3.45%
- 3Y*
- 4.32%
- 5Y*
- 1.52%
- 10Y*
- 1.89%
IEF
- 1D
- 0.13%
- 1M
- -0.10%
- YTD
- -0.53%
- 6M
- -0.73%
- 1Y
- 3.44%
- 3Y*
- 2.52%
- 5Y*
- -1.11%
- 10Y*
- 0.67%
VBITX vs. IEF - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VBITX Vanguard Short-Term Bond Index Fund Institutional Shares | 0.21% | 6.11% | 3.77% | 4.43% | -5.61% | -1.18% | 4.72% | 4.89% | 1.38% | 1.20% |
IEF iShares 7-10 Year Treasury Bond ETF | -0.53% | 8.03% | -0.63% | 3.64% | -15.15% | -3.33% | 10.01% | 8.03% | 0.99% | 2.55% |
Correlation
The correlation between VBITX and IEF is 0.81, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.81 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.83 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.84 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.79 |
Correlation (All Time) Calculated using the full available price history since Sep 28, 2011 | 0.77 |
The correlation between VBITX and IEF has been stable across timeframes, ranging from 0.77 to 0.84 - a consistent structural relationship.
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Return for Risk
VBITX vs. IEF — Risk / Return Rank
VBITX
IEF
VBITX vs. IEF - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Bond Index Fund Institutional Shares (VBITX) and iShares 7-10 Year Treasury Bond ETF (IEF). 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.
| VBITX | IEF | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.88 | ||
| Sortino ratioReturn per unit of downside risk | +1.63 | ||
| Omega ratioGain probability vs. loss probability | 1.32 | 1.12 | +0.19 |
| Calmar ratioReturn relative to maximum drawdown | 2.38 | 0.85 | +1.53 |
| Martin ratioReturn relative to average drawdown | 7.79 | 2.50 | +5.29 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VBITX | IEF | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.61 | 0.73 | +0.88 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.52 | -0.14 | +0.66 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.79 | 0.10 | +0.69 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.78 | 0.50 | +0.28 |
Drawdowns
VBITX vs. IEF - Drawdown Comparison
The maximum VBITX drawdown since its inception was -8.65%, smaller than the maximum IEF drawdown of -23.93%. Use the drawdown chart below to compare losses from any high point for VBITX and IEF.
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Drawdown Indicators
| VBITX | IEF | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -8.65% | -23.93% | +15.28% |
Max Drawdown (1Y)Largest decline over 1 year | -1.54% | -4.07% | +2.53% |
Max Drawdown (3Y)Largest decline over 3 years | -1.54% | -7.74% | +6.20% |
Max Drawdown (5Y)Largest decline over 5 years | -8.61% | -21.40% | +12.79% |
Max Drawdown (10Y)Largest decline over 10 years | -8.65% | -23.93% | +15.28% |
Current DrawdownCurrent decline from peak | -0.72% | -11.23% | +10.51% |
Average DrawdownAverage peak-to-trough decline | -1.18% | -5.35% | +4.17% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.47% | 1.38% | -0.91% |
Volatility
VBITX vs. IEF - Volatility Comparison
The current volatility for Vanguard Short-Term Bond Index Fund Institutional Shares (VBITX) is 0.71%, while iShares 7-10 Year Treasury Bond ETF (IEF) has a volatility of 1.54%. This indicates that VBITX experiences smaller price fluctuations and is considered to be less risky than IEF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VBITX | IEF | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.71% | 1.54% | -0.83% |
Volatility (6M)Calculated over the trailing 6-month period | 1.61% | 3.34% | -1.73% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.27% | 4.78% | -2.51% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.96% | 7.71% | -4.75% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.40% | 6.62% | -4.22% |
VBITX vs. IEF - Expense Ratio Comparison
VBITX has a 0.05% expense ratio, which is lower than IEF'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
VBITX vs. IEF - Dividend Comparison
VBITX's dividend yield for the trailing twelve months is around 4.02%, more than IEF's 3.90% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IEF iShares 7-10 Year Treasury Bond ETF | 3.90% | 3.77% | 3.62% | 2.91% | 1.96% | 0.83% | 1.08% | 2.08% | 2.24% | 1.82% | 1.81% | 1.90% |
VBITX Vanguard Short-Term Bond Index Fund Institutional Shares | 4.02% | 3.85% | 3.39% | 1.99% | 1.48% | 1.24% | 1.80% | 2.26% | 2.03% | 1.69% | 1.52% | 1.44% |
Frequently Asked Questions
VBITX and IEF have a correlation of 0.81, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IEF has higher volatility (1.54%) compared to VBITX (0.71%). In terms of maximum drawdown, VBITX dropped -8.65% vs IEF's -23.93%.
VBITX currently has the higher Sharpe Ratio (1.61 vs 0.73), 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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