VGSH vs. VTIP
Compare and contrast key facts about Vanguard Short-Term Treasury ETF (VGSH) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP).
VGSH and VTIP are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VGSH is a passively managed fund by Vanguard that tracks the performance of the Barclays U.S. 1-3 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 VGSH 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: VGSH or VTIP.
Key characteristics
| VGSH | VTIP | |
|---|---|---|
| Sharpe Ratio | 2.43 | 3.09 |
| Sortino Ratio | 3.79 | 5.45 |
| Omega Ratio | 1.51 | 1.72 |
| Calmar Ratio | 3.03 | 8.61 |
| Martin Ratio | 11.77 | 23.08 |
| Ulcer Index | 0.39% | 0.28% |
| Daily Std Dev | 1.88% | 1.97% |
| Max Drawdown | -5.70% | -6.27% |
| Current Drawdown | -0.80% | -0.18% |
Correlation
The correlation between VGSH and VTIP is 0.54, 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
VGSH vs. VTIP - Performance Comparison
Returns By Period
In the year-to-date period, VGSH achieves a 3.40% return, which is significantly lower than VTIP's 4.84% return. Over the past 10 years, VGSH has underperformed VTIP with an annualized return of 1.28%, while VTIP has yielded a comparatively higher 2.52% annualized return.
VGSH
3.40%
0.02%
2.71%
4.30%
1.25%
1.28%
VTIP
4.84%
0.57%
3.03%
5.67%
3.55%
2.52%
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
VGSH vs. VTIP - Expense Ratio Comparison
Both VGSH 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
VGSH vs. VTIP - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Treasury ETF (VGSH) 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
VGSH vs. VTIP - Dividend Comparison
VGSH's dividend yield for the trailing twelve months is around 3.83%, more than VTIP's 2.89% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VGSH Vanguard Short-Term Treasury ETF | 3.83% | 3.32% | 1.15% | 0.66% | 1.75% | 2.28% | 1.79% | 1.10% | 0.84% | 0.71% | 0.46% | 0.34% |
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 2.89% | 3.36% | 6.84% | 4.68% | 1.20% | 1.95% | 2.45% | 1.52% | 0.76% | 0.00% | 0.82% | 0.05% |
Drawdowns
VGSH vs. VTIP - Drawdown Comparison
The maximum VGSH drawdown since its inception was -5.70%, smaller than the maximum VTIP drawdown of -6.27%. Use the drawdown chart below to compare losses from any high point for VGSH and VTIP. For additional features, visit the drawdowns tool.
Volatility
VGSH vs. VTIP - Volatility Comparison
Vanguard Short-Term Treasury ETF (VGSH) has a higher volatility of 0.58% compared to Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) at 0.44%. This indicates that VGSH'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.