VTIP vs. FLOT
VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) and FLOT (iShares Floating Rate Bond 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 FLOT is a Ultrashort Bond fund tracking the Bloomberg US Floating Rate Note < 5 Years Index. Both are passively managed. Over the past 10 years, VTIP returned 3.03%/yr vs 3.03%/yr for FLOT. At a 0.06 correlation, their price movements are largely independent. VTIP charges 0.03%/yr vs 0.15%/yr for FLOT.
Performance
VTIP vs. FLOT - Performance Comparison
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Returns By Period
In the year-to-date period, VTIP achieves a 1.72% return, which is significantly lower than FLOT's 2.11% return. Over a longer period, both investments have demonstrated similar performance, with their 10-year annualized returns being quite close: VTIP at 3.03% and FLOT at 3.03%.
VTIP
- 1D
- 0.10%
- 1M
- -0.28%
- YTD
- 1.72%
- 6M
- 1.72%
- 1Y
- 3.80%
- 3Y*
- 5.19%
- 5Y*
- 3.31%
- 10Y*
- 3.03%
FLOT
- 1D
- 0.00%
- 1M
- 0.37%
- YTD
- 2.11%
- 6M
- 2.21%
- 1Y
- 4.72%
- 3Y*
- 5.56%
- 5Y*
- 4.24%
- 10Y*
- 3.03%
VTIP vs. FLOT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 1.72% | 6.07% | 4.74% | 4.62% | -2.94% | 5.36% | 4.95% | 4.86% | 0.56% | 0.82% |
FLOT iShares Floating Rate Bond ETF | 2.11% | 4.91% | 6.53% | 6.43% | 1.28% | 0.45% | 0.87% | 3.97% | 1.48% | 1.65% |
Correlation
The correlation between VTIP and FLOT is 0.09, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.09 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.12 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.09 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.07 |
Correlation (All Time) Calculated using the full available price history since Oct 16, 2012 | 0.06 |
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Return for Risk
VTIP vs. FLOT — Risk / Return Rank
VTIP
FLOT
VTIP vs. FLOT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) and iShares Floating Rate Bond ETF (FLOT). 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.
| VTIP | FLOT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -3.90 | ||
| Sortino ratioReturn per unit of downside risk | -7.61 | ||
| Omega ratioGain probability vs. loss probability | 1.50 | 3.10 | -1.60 |
| Calmar ratioReturn relative to maximum drawdown | 5.35 | 10.99 | -5.63 |
| Martin ratioReturn relative to average drawdown | 18.14 | 101.65 | -83.51 |
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Drawdowns
VTIP vs. FLOT - Drawdown Comparison
The maximum VTIP drawdown since its inception was -6.27%, smaller than the maximum FLOT drawdown of -13.54%. Use the drawdown chart below to compare losses from any high point for VTIP and FLOT.
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Drawdown Indicators
| VTIP | FLOT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -6.27% | -13.54% | +7.27% |
Max Drawdown (1Y)Largest decline over 1 year | -0.71% | -0.43% | -0.28% |
Max Drawdown (3Y)Largest decline over 3 years | -0.98% | -1.57% | +0.59% |
Max Drawdown (5Y)Largest decline over 5 years | -5.50% | -2.36% | -3.14% |
Max Drawdown (10Y)Largest decline over 10 years | -6.27% | -13.54% | +7.27% |
Current DrawdownCurrent decline from peak | -0.34% | 0.00% | -0.34% |
Average DrawdownAverage peak-to-trough decline | -1.04% | -0.21% | -0.83% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.21% | 0.05% | +0.16% |
Volatility
VTIP vs. FLOT - Volatility Comparison
Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) has a higher volatility of 0.64% compared to iShares Floating Rate Bond ETF (FLOT) at 0.21%. This indicates that VTIP's price experiences larger fluctuations and is considered to be riskier than FLOT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VTIP | FLOT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.64% | 0.21% | +0.43% |
Volatility (6M)Calculated over the trailing 6-month period | 1.18% | 0.63% | +0.55% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.58% | 0.75% | +0.83% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.77% | 1.78% | +0.99% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.74% | 4.15% | -1.41% |
VTIP vs. FLOT - Expense Ratio Comparison
VTIP has a 0.03% expense ratio, which is lower than FLOT's 0.15% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
VTIP vs. FLOT - Dividend Comparison
VTIP's dividend yield for the trailing twelve months is around 3.59%, less than FLOT's 4.52% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FLOT iShares Floating Rate Bond ETF | 4.52% | 4.84% | 5.82% | 5.66% | 2.06% | 0.43% | 1.25% | 2.78% | 2.41% | 1.46% | 0.97% | 0.53% |
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 FLOT have a correlation of 0.09, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VTIP has higher volatility (0.64%) compared to FLOT (0.21%). In terms of maximum drawdown, VTIP dropped -6.27% vs FLOT's -13.54%.
On 10-year performance, FLOT leads with 3.03% vs 3.03% for VTIP. On fees, VTIP is cheaper at 0.03% per year. On volatility, FLOT has been the lower-risk option at 0.21%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, FLOT has performed better with a 3.03% return vs 3.03%. 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 FLOT.
FLOT has the higher dividend yield at 4.52%, compared with 3.59% for VTIP.
VTIP is categorized as Inflation-Protected Bonds, while FLOT is Ultrashort Bond. VTIP tracks Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index, while FLOT tracks Bloomberg US Floating Rate Note < 5 Years Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.03% for VTIP and 0.15% for FLOT.
FLOT currently has the higher Sharpe Ratio (6.32 vs 2.43), 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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