VGIT vs. VTIP
Compare and contrast key facts about Vanguard Intermediate-Term Treasury ETF (VGIT) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP).
VGIT and VTIP are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VGIT is a passively managed fund by Vanguard that tracks the performance of the Barclays U.S. 3-10 Year Government Float Adjusted Index. It was launched on Nov 19, 2009. VTIP is a passively managed fund by Vanguard that tracks the performance of the Barclays Capital U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Years Index (Series-L). It was launched on Oct 12, 2012. Both VGIT and VTIP 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: VGIT or VTIP.
Key characteristics
| VGIT | VTIP | |
|---|---|---|
| YTD Return | 1.25% | 4.42% |
| 1Y Return | 4.75% | 6.55% |
| 3Y Return (Ann) | -1.78% | 2.02% |
| 5Y Return (Ann) | -0.21% | 3.51% |
| 10Y Return (Ann) | 1.12% | 2.40% |
| Sharpe Ratio | 1.07 | 3.16 |
| Sortino Ratio | 1.58 | 5.62 |
| Omega Ratio | 1.19 | 1.73 |
| Calmar Ratio | 0.41 | 5.00 |
| Martin Ratio | 3.23 | 24.86 |
| Ulcer Index | 1.65% | 0.27% |
| Daily Std Dev | 4.95% | 2.13% |
| Max Drawdown | -16.05% | -6.27% |
| Current Drawdown | -8.77% | -0.59% |
Correlation
The correlation between VGIT and VTIP is 0.57, 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
VGIT vs. VTIP - Performance Comparison
In the year-to-date period, VGIT achieves a 1.25% return, which is significantly lower than VTIP's 4.42% return. Over the past 10 years, VGIT has underperformed VTIP with an annualized return of 1.12%, while VTIP has yielded a comparatively higher 2.40% 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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VGIT vs. VTIP - Expense Ratio Comparison
Both VGIT and VTIP have an expense ratio of 0.04%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Risk-Adjusted Performance
VGIT vs. VTIP - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Intermediate-Term Treasury ETF (VGIT) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP). 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
VGIT vs. VTIP - Dividend Comparison
VGIT's dividend yield for the trailing twelve months is around 3.58%, more than VTIP's 3.39% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VGIT Vanguard Intermediate-Term Treasury ETF | 3.58% | 2.72% | 1.74% | 1.69% | 2.23% | 2.24% | 2.05% | 1.67% | 1.69% | 1.69% | 1.54% | 1.63% |
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 3.39% | 3.36% | 6.84% | 4.68% | 1.20% | 1.95% | 2.45% | 1.52% | 0.76% | 0.00% | 0.82% | 0.05% |
Drawdowns
VGIT vs. VTIP - Drawdown Comparison
The maximum VGIT drawdown since its inception was -16.05%, which is greater than VTIP's maximum drawdown of -6.27%. Use the drawdown chart below to compare losses from any high point for VGIT and VTIP. For additional features, visit the drawdowns tool.
Volatility
VGIT vs. VTIP - Volatility Comparison
Vanguard Intermediate-Term Treasury ETF (VGIT) has a higher volatility of 1.21% compared to Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) at 0.49%. This indicates that VGIT's price experiences larger fluctuations and is considered to be riskier than VTIP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.