VIPSX vs. SHY
VIPSX (Vanguard Inflation-Protected Securities Fund Investor Shares) and SHY (iShares 1-3 Year Treasury Bond ETF) are both funds - VIPSX is a Inflation-Protected Bonds fund managed by Vanguard, while SHY is a Government Bonds fund tracking the ICE US Treasury 1-3 Year Index. Over the past 10 years, VIPSX returned 2.47%/yr vs 1.65%/yr for SHY. A 0.63 correlation means they provide meaningful diversification when combined. VIPSX charges 0.20%/yr vs 0.15%/yr for SHY.
Performance
VIPSX vs. SHY - Performance Comparison
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Returns By Period
In the year-to-date period, VIPSX achieves a 1.17% return, which is significantly higher than SHY's 0.60% return. Over the past 10 years, VIPSX has outperformed SHY with an annualized return of 2.47%, while SHY has yielded a comparatively lower 1.65% annualized return.
VIPSX
- 1D
- -0.17%
- 1M
- 0.34%
- YTD
- 1.17%
- 6M
- 1.28%
- 1Y
- 4.66%
- 3Y*
- 3.93%
- 5Y*
- 0.88%
- 10Y*
- 2.47%
SHY
- 1D
- 0.05%
- 1M
- 0.36%
- YTD
- 0.60%
- 6M
- 0.79%
- 1Y
- 3.34%
- 3Y*
- 4.16%
- 5Y*
- 1.78%
- 10Y*
- 1.65%
VIPSX vs. SHY - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VIPSX Vanguard Inflation-Protected Securities Fund Investor Shares | 1.17% | 6.77% | 1.74% | 3.73% | -12.04% | 5.57% | 10.90% | 8.06% | -1.48% | 2.81% |
SHY iShares 1-3 Year Treasury Bond ETF | 0.60% | 4.95% | 3.92% | 4.16% | -3.88% | -0.71% | 3.03% | 3.38% | 1.46% | 0.26% |
Correlation
The correlation between VIPSX and SHY is 0.69, 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 | 0.69 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.75 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.70 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.66 |
Correlation (All Time) Calculated using the full available price history since Jul 26, 2002 | 0.63 |
The correlation between VIPSX and SHY shifts across timeframes, from 0.63 (all time) to 0.75 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
VIPSX vs. SHY — Risk / Return Rank
VIPSX
SHY
VIPSX vs. SHY - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Inflation-Protected Securities Fund Investor Shares (VIPSX) and iShares 1-3 Year Treasury Bond ETF (SHY). 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.
| VIPSX | SHY | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.19 | ||
| Sortino ratioReturn per unit of downside risk | -2.12 | ||
| Omega ratioGain probability vs. loss probability | 1.23 | 1.52 | -0.29 |
| Calmar ratioReturn relative to maximum drawdown | 2.23 | 3.78 | -1.54 |
| Martin ratioReturn relative to average drawdown | 6.81 | 15.00 | -8.20 |
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Drawdowns
VIPSX vs. SHY - Drawdown Comparison
The maximum VIPSX drawdown since its inception was -15.13%, which is greater than SHY's maximum drawdown of -5.71%. Use the drawdown chart below to compare losses from any high point for VIPSX and SHY.
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Drawdown Indicators
| VIPSX | SHY | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -15.13% | -5.71% | -9.42% |
Max Drawdown (1Y)Largest decline over 1 year | -2.02% | -0.89% | -1.13% |
Max Drawdown (3Y)Largest decline over 3 years | -4.57% | -0.97% | -3.60% |
Max Drawdown (5Y)Largest decline over 5 years | -14.55% | -5.71% | -8.84% |
Max Drawdown (10Y)Largest decline over 10 years | -14.55% | -5.71% | -8.84% |
Current DrawdownCurrent decline from peak | -0.53% | -0.14% | -0.39% |
Average DrawdownAverage peak-to-trough decline | -3.24% | -0.52% | -2.72% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.66% | 0.22% | +0.44% |
Volatility
VIPSX vs. SHY - Volatility Comparison
Vanguard Inflation-Protected Securities Fund Investor Shares (VIPSX) has a higher volatility of 1.20% compared to iShares 1-3 Year Treasury Bond ETF (SHY) at 0.40%. This indicates that VIPSX's price experiences larger fluctuations and is considered to be riskier than SHY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VIPSX | SHY | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.20% | 0.40% | +0.80% |
Volatility (6M)Calculated over the trailing 6-month period | 2.40% | 0.95% | +1.45% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.37% | 1.33% | +2.04% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.99% | 1.99% | +4.00% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.33% | 1.57% | +3.76% |
VIPSX vs. SHY - Expense Ratio Comparison
VIPSX has a 0.20% expense ratio, which is higher than SHY's 0.15% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
VIPSX vs. SHY - Dividend Comparison
VIPSX's dividend yield for the trailing twelve months is around 4.41%, more than SHY's 3.68% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SHY iShares 1-3 Year Treasury Bond ETF | 3.68% | 3.81% | 3.92% | 2.99% | 1.30% | 0.26% | 0.94% | 2.12% | 1.72% | 0.98% | 0.71% | 0.54% |
VIPSX Vanguard Inflation-Protected Securities Fund Investor Shares | 4.41% | 4.64% | 4.07% | 4.20% | 8.34% | 5.03% | 1.28% | 2.22% | 3.03% | 2.32% | 3.38% | 0.77% |
Frequently Asked Questions
VIPSX and SHY have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VIPSX has higher volatility (1.20%) compared to SHY (0.40%). In terms of maximum drawdown, VIPSX dropped -15.13% vs SHY's -5.71%.
SHY currently has the higher Sharpe Ratio (2.53 vs 1.34), 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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