VTIP vs. BIV
VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) and BIV (Vanguard Intermediate-Term Bond Index ETF) are both exchange-traded funds - VTIP is a Inflation-Protected Bonds fund tracking the Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index, while BIV is a Intermediate Core Bond fund tracking the Bloomberg U.S. 5–10 Year Government/Credit Float Adjusted Bond Index. Both are passively managed. Over the past 10 years, VTIP returned 3.13%/yr vs 1.93%/yr for BIV. A 0.58 correlation means they provide meaningful diversification when combined. Both charge a 0.03% expense ratio.
Performance
VTIP vs. BIV - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, VTIP achieves a 1.97% return, which is significantly higher than BIV's -0.11% return. Over the past 10 years, VTIP has outperformed BIV with an annualized return of 3.13%, while BIV has yielded a comparatively lower 1.93% annualized return.
VTIP
- 1D
- -0.08%
- 1M
- 0.10%
- YTD
- 1.97%
- 6M
- 1.99%
- 1Y
- 4.51%
- 3Y*
- 5.18%
- 5Y*
- 3.35%
- 10Y*
- 3.13%
BIV
- 1D
- 0.13%
- 1M
- 0.04%
- YTD
- -0.11%
- 6M
- -0.10%
- 1Y
- 4.33%
- 3Y*
- 4.34%
- 5Y*
- 0.28%
- 10Y*
- 1.93%
VTIP vs. BIV - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 1.97% | 6.07% | 4.74% | 4.62% | -2.94% | 5.36% | 4.95% | 4.86% | 0.56% | 0.82% |
BIV Vanguard Intermediate-Term Bond Index ETF | -0.11% | 8.52% | 1.57% | 6.07% | -13.21% | -2.40% | 9.67% | 10.34% | -0.19% | 3.65% |
Correlation
The correlation between VTIP and BIV is 0.56, 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 | 0.56 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.72 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.62 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.59 |
Correlation (All Time) Calculated using the full available price history since Oct 17, 2012 | 0.58 |
The correlation between VTIP and BIV shifts across timeframes, from 0.56 (1 year) to 0.72 (3 years), reflecting how their relationship changes across market environments.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
VTIP vs. BIV — Risk / Return Rank
VTIP
BIV
VTIP vs. BIV - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) and Vanguard Intermediate-Term Bond Index ETF (BIV). 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.
| VTIP | BIV | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.94 | ||
| Sortino ratioReturn per unit of downside risk | +3.53 | ||
| Omega ratioGain probability vs. loss probability | 1.63 | 1.19 | +0.45 |
| Calmar ratioReturn relative to maximum drawdown | 6.48 | 1.37 | +5.11 |
| Martin ratioReturn relative to average drawdown | 25.53 | 4.13 | +21.40 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
Loading charts...
Sharpe Ratios by Period
| VTIP | BIV | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 3.02 | 1.08 | +1.94 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 1.21 | 0.04 | +1.17 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 1.15 | 0.35 | +0.79 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.89 | 0.65 | +0.25 |
Drawdowns
VTIP vs. BIV - Drawdown Comparison
The maximum VTIP drawdown since its inception was -6.27%, smaller than the maximum BIV drawdown of -18.95%. Use the drawdown chart below to compare losses from any high point for VTIP and BIV.
Loading charts...
Drawdown Indicators
| VTIP | BIV | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -6.27% | -18.95% | +12.68% |
Max Drawdown (1Y)Largest decline over 1 year | -0.70% | -3.18% | +2.48% |
Max Drawdown (3Y)Largest decline over 3 years | -0.98% | -6.07% | +5.09% |
Max Drawdown (5Y)Largest decline over 5 years | -5.50% | -18.74% | +13.24% |
Max Drawdown (10Y)Largest decline over 10 years | -6.27% | -18.95% | +12.68% |
Current DrawdownCurrent decline from peak | -0.10% | -1.91% | +1.81% |
Average DrawdownAverage peak-to-trough decline | -1.04% | -3.39% | +2.35% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.18% | 1.05% | -0.87% |
Volatility
VTIP vs. BIV - Volatility Comparison
The current volatility for Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is 0.42%, while Vanguard Intermediate-Term Bond Index ETF (BIV) has a volatility of 1.36%. This indicates that VTIP experiences smaller price fluctuations and is considered to be less risky than BIV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| VTIP | BIV | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.42% | 1.36% | -0.94% |
Volatility (6M)Calculated over the trailing 6-month period | 1.03% | 2.90% | -1.87% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.50% | 4.06% | -2.56% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.77% | 6.40% | -3.63% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.74% | 5.50% | -2.76% |
VTIP vs. BIV - Expense Ratio Comparison
Both VTIP and BIV have an expense ratio of 0.03%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
VTIP vs. BIV - Dividend Comparison
VTIP's dividend yield for the trailing twelve months is around 3.59%, less than BIV's 4.21% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BIV Vanguard Intermediate-Term Bond Index ETF | 4.21% | 4.01% | 3.79% | 3.09% | 2.41% | 3.42% | 2.95% | 2.75% | 2.88% | 2.69% | 3.01% | 3.02% |
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 3.59% | 3.81% | 2.70% | 2.86% | 6.84% | 4.68% | 1.20% | 1.95% | 2.45% | 1.52% | 0.76% | 0.00% |
Frequently Asked Questions
VTIP and BIV have a correlation of 0.56, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
BIV has higher volatility (1.36%) compared to VTIP (0.42%). In terms of maximum drawdown, VTIP dropped -6.27% vs BIV's -18.95%.
On 10-year performance, VTIP leads with 3.13% vs 1.93% for BIV. Both ETFs have the same 0.03% expense ratio. On volatility, VTIP has been the lower-risk option at 0.42%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VTIP has performed better with a 3.13% return vs 1.93%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VTIP and BIV have the same expense ratio: 0.03% per year.
BIV has the higher dividend yield at 4.21%, compared with 3.59% for VTIP.
VTIP is categorized as Inflation-Protected Bonds, while BIV is Intermediate Core Bond. VTIP tracks Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index, while BIV tracks Bloomberg U.S. 5–10 Year Government/Credit Float Adjusted Bond Index.
VTIP currently has the higher Sharpe Ratio (3.02 vs 1.08), 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.
Find the right allocation for VTIP and BIV
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer