VBND vs. TIP
Compare and contrast key facts about Vident Core U.S. Bond Strategy ETF (VBND) and iShares TIPS Bond ETF (TIP).
VBND and TIP are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VBND is a passively managed fund by Vident that tracks the performance of the Vident Core U.S. Bond Strategy Index. It was launched on Oct 15, 2014. 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. Both VBND and TIP are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VBND or TIP.
Performance
VBND vs. TIP - Performance Comparison
Returns By Period
In the year-to-date period, VBND achieves a 1.93% return, which is significantly lower than TIP's 2.41% return. Over the past 10 years, VBND has underperformed TIP with an annualized return of 1.31%, while TIP has yielded a comparatively higher 2.04% annualized return.
VBND
1.93%
-0.62%
2.72%
6.93%
-0.06%
1.31%
TIP
2.41%
-0.87%
2.80%
5.44%
1.84%
2.04%
Key characteristics
| VBND | TIP | |
|---|---|---|
| Sharpe Ratio | 1.17 | 1.13 |
| Sortino Ratio | 1.70 | 1.67 |
| Omega Ratio | 1.21 | 1.20 |
| Calmar Ratio | 0.52 | 0.45 |
| Martin Ratio | 4.47 | 4.71 |
| Ulcer Index | 1.54% | 1.18% |
| Daily Std Dev | 5.88% | 4.91% |
| Max Drawdown | -18.97% | -14.56% |
| Current Drawdown | -6.89% | -7.21% |
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VBND vs. TIP - Expense Ratio Comparison
VBND has a 0.39% expense ratio, which is higher than TIP's 0.19% expense ratio.
Correlation
The correlation between VBND and TIP is 0.72, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Risk-Adjusted Performance
VBND vs. TIP - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vident Core U.S. Bond Strategy ETF (VBND) 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
VBND vs. TIP - Dividend Comparison
VBND's dividend yield for the trailing twelve months is around 4.35%, more than TIP's 2.41% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VBND Vident Core U.S. Bond Strategy ETF | 4.35% | 3.88% | 2.55% | 1.56% | 1.98% | 3.13% | 2.82% | 2.00% | 3.12% | 1.49% | 0.11% | 0.00% |
TIP iShares TIPS Bond ETF | 2.41% | 2.73% | 6.96% | 4.28% | 1.17% | 1.75% | 2.71% | 2.07% | 1.48% | 0.34% | 1.67% | 1.15% |
Drawdowns
VBND vs. TIP - Drawdown Comparison
The maximum VBND drawdown since its inception was -18.97%, which is greater than TIP's maximum drawdown of -14.56%. Use the drawdown chart below to compare losses from any high point for VBND and TIP. For additional features, visit the drawdowns tool.
Volatility
VBND vs. TIP - Volatility Comparison
Vident Core U.S. Bond Strategy ETF (VBND) has a higher volatility of 1.75% compared to iShares TIPS Bond ETF (TIP) at 1.10%. This indicates that VBND's price experiences larger fluctuations and is considered to be riskier than TIP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.