VSDB vs. VTIP
VSDB (Vanguard Short Duration Bond ETF Shares) and VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) are both exchange-traded funds - VSDB is a Short-Term Bond fund actively managed by Vanguard, while VTIP is a Inflation-Protected Bonds fund tracking the Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index. VSDB is actively managed, while VTIP is passively managed. Over the past year, VSDB returned 4.75% vs 3.64% for VTIP. A 0.56 correlation means they provide meaningful diversification when combined. VSDB charges 0.15%/yr vs 0.03%/yr for VTIP.
Performance
VSDB vs. VTIP - Performance Comparison
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Returns By Period
In the year-to-date period, VSDB achieves a 0.95% return, which is significantly lower than VTIP's 1.34% return.
VSDB
- 1D
- -0.11%
- 1M
- 0.30%
- YTD
- 0.95%
- 6M
- 1.15%
- 1Y
- 4.75%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
VTIP
- 1D
- -0.18%
- 1M
- -0.24%
- YTD
- 1.34%
- 6M
- 1.46%
- 1Y
- 3.64%
- 3Y*
- 5.00%
- 5Y*
- 3.26%
- 10Y*
- 3.03%
VSDB vs. VTIP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | |
|---|---|---|
VSDB Vanguard Short Duration Bond ETF Shares | 0.95% | 4.88% |
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 1.34% | 3.01% |
Correlation
The correlation between VSDB and VTIP is 0.51, 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 | 0.51 |
Correlation (All Time) Calculated using the full available price history since Apr 3, 2025 | 0.56 |
The correlation between VSDB and VTIP has been stable across timeframes, ranging from 0.51 to 0.56 - a consistent structural relationship.
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Return for Risk
VSDB vs. VTIP — Risk / Return Rank
VSDB
VTIP
VSDB vs. VTIP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short Duration Bond ETF Shares (VSDB) 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.
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.
| VSDB | VTIP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.42 | ||
| Sortino ratioReturn per unit of downside risk | +0.62 | ||
| Omega ratioGain probability vs. loss probability | 1.56 | 1.47 | +0.09 |
| Calmar ratioReturn relative to maximum drawdown | 3.35 | 5.12 | -1.77 |
| Martin ratioReturn relative to average drawdown | 14.67 | 18.66 | -3.99 |
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Drawdowns
VSDB vs. VTIP - Drawdown Comparison
The maximum VSDB drawdown since its inception was -1.42%, smaller than the maximum VTIP drawdown of -6.27%. Use the drawdown chart below to compare losses from any high point for VSDB and VTIP.
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Drawdown Indicators
| VSDB | VTIP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -1.42% | -6.27% | +4.85% |
Max Drawdown (1Y)Largest decline over 1 year | -1.42% | -0.71% | -0.71% |
Max Drawdown (3Y)Largest decline over 3 years | — | -0.98% | — |
Max Drawdown (5Y)Largest decline over 5 years | — | -5.50% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -6.27% | — |
Current DrawdownCurrent decline from peak | -0.26% | -0.71% | +0.45% |
Average DrawdownAverage peak-to-trough decline | -0.19% | -1.04% | +0.85% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.32% | 0.20% | +0.12% |
Volatility
VSDB vs. VTIP - Volatility Comparison
The current volatility for Vanguard Short Duration Bond ETF Shares (VSDB) is 0.52%, while Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) has a volatility of 0.65%. This indicates that VSDB experiences smaller price fluctuations and is considered to be less risky than VTIP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VSDB | VTIP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.52% | 0.65% | -0.13% |
Volatility (6M)Calculated over the trailing 6-month period | 1.39% | 1.17% | +0.22% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.75% | 1.58% | +0.17% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.90% | 2.77% | -0.87% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.90% | 2.74% | -0.84% |
VSDB vs. VTIP - Expense Ratio Comparison
VSDB has a 0.15% expense ratio, which is higher than VTIP's 0.03% 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
VSDB vs. VTIP - Dividend Comparison
VSDB's dividend yield for the trailing twelve months is around 4.16%, more than VTIP's 3.61% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
VSDB Vanguard Short Duration Bond ETF Shares | 4.16% | 3.30% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 3.61% | 3.81% | 2.70% | 2.86% | 6.84% | 4.68% | 1.20% | 1.95% | 2.45% | 1.52% | 0.76% |
Frequently Asked Questions
VSDB and VTIP have a correlation of 0.51, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VTIP has higher volatility (0.65%) compared to VSDB (0.52%). In terms of maximum drawdown, VSDB dropped -1.42% vs VTIP's -6.27%.
On 1-year performance, VSDB leads with 4.75% vs 3.64% for VTIP. On fees, VTIP is cheaper at 0.03% per year. On volatility, VSDB has been the lower-risk option at 0.52%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, VSDB has performed better with a 4.75% return vs 3.64%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VTIP is cheaper with a 0.03% expense ratio, compared with 0.15% for VSDB.
VSDB has the higher dividend yield at 4.16%, compared with 3.61% for VTIP.
VSDB is categorized as Short-Term Bond, while VTIP is Inflation-Protected Bonds. Their fees differ too: 0.15% for VSDB and 0.03% for VTIP.
VSDB currently has the higher Sharpe Ratio (2.74 vs 2.32), 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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