VTIP vs. HYZD
VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) and HYZD (WisdomTree Interest Rate Hedged High Yield Bond Fund) 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 HYZD is a High Yield Bonds fund tracking the WisdomTree U.S. High Yield Corporate Bond, Zero Duration Index. Both are passively managed. Over the past 10 years, VTIP returned 3.10%/yr vs 5.36%/yr for HYZD. Their -0.02 correlation means they have often moved in opposite directions in the past. VTIP charges 0.03%/yr vs 0.43%/yr for HYZD.
Performance
VTIP vs. HYZD - Performance Comparison
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Returns By Period
In the year-to-date period, VTIP achieves a 1.83% return, which is significantly lower than HYZD's 3.50% return. Over the past 10 years, VTIP has underperformed HYZD with an annualized return of 3.10%, while HYZD has yielded a comparatively higher 5.36% annualized return.
VTIP
- 1D
- 0.00%
- 1M
- 0.16%
- 6M
- 1.28%
- YTD
- 1.83%
- 1Y
- 3.09%
- 3Y*
- 5.11%
- 5Y*
- 3.06%
- 10Y*
- 3.10%
- ALL TIME*
- 2.21%
HYZD
- 1D
- 0.15%
- 1M
- 0.51%
- 6M
- 2.66%
- YTD
- 3.50%
- 1Y
- 7.45%
- 3Y*
- 8.44%
- 5Y*
- 6.27%
- 10Y*
- 5.36%
- ALL TIME*
- 4.40%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $1.53M | $1.90M | $1.53M | |
| $104.26M | $116.98M | $124.63M |
VTIP vs. HYZD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 1.83% | 6.07% | 4.74% | 4.62% | -2.94% | 5.36% | 4.95% | 4.86% | 0.56% | 0.82% |
HYZD WisdomTree Interest Rate Hedged High Yield Bond Fund | 3.50% | 7.67% | 9.39% | 11.17% | -2.35% | 6.27% | -0.63% | 9.17% | -2.21% | 6.32% |
Correlation
The correlation between VTIP and HYZD is -0.13, meaning they have often moved in opposite directions in the past. This relationship can weaken or reverse as market conditions change.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | -0.13 |
Correlation (3Y) Balances recent behavior with more history. | -0.06 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.01 |
Correlation (10Y) Provides a long-term view across more market conditions. | -0.02 |
Correlation (All Time) Calculated using the full available price history since Dec 18, 2013 | -0.02 |
The correlation between VTIP and HYZD shifts across timeframes, from -0.13 (1 year) to 0.01 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
VTIP vs. HYZD — Risk / Return Rank
VTIP
HYZD
VTIP vs. HYZD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) and WisdomTree Interest Rate Hedged High Yield Bond Fund (HYZD). 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 | HYZD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.07 | ||
| Sortino ratioReturn per unit of downside risk | -0.16 | ||
| Omega ratioGain probability vs. loss probability | 1.46 | 1.48 | -0.02 |
| Calmar ratioReturn relative to maximum drawdown | 4.93 | 3.66 | +1.28 |
| Martin ratioReturn relative to average drawdown | 15.25 | 15.97 | -0.73 |
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Drawdowns
VTIP vs. HYZD - Drawdown Comparison
The maximum VTIP drawdown since its inception was -6.27%, smaller than the maximum HYZD drawdown of -25.66%. Use the drawdown chart below to compare losses from any high point for VTIP and HYZD.
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Drawdown Indicators
| VTIP | HYZD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -6.27% | -25.66% | +19.39% |
Max Drawdown (1Y)Largest decline over 1 year | -0.71% | -1.91% | +1.20% |
Max Drawdown (3Y)Largest decline over 3 years | -0.98% | -5.85% | +4.87% |
Max Drawdown (5Y)Largest decline over 5 years | -5.50% | -8.97% | +3.47% |
Max Drawdown (10Y)Largest decline over 10 years | -6.27% | -25.66% | +19.39% |
Current DrawdownCurrent decline from peak | -0.23% | 0.00% | -0.23% |
Average DrawdownAverage peak-to-trough decline | -1.03% | -2.18% | +1.15% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.23% | 0.44% | -0.21% |
Volatility
VTIP vs. HYZD - Volatility Comparison
The current volatility for Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is 0.41%, while WisdomTree Interest Rate Hedged High Yield Bond Fund (HYZD) has a volatility of 0.44%. This indicates that VTIP experiences smaller price fluctuations and is considered to be less risky than HYZD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VTIP | HYZD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.41% | 0.44% | -0.03% |
Volatility (6M)Calculated over the trailing 6-month period | 1.22% | 2.39% | -1.17% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.57% | 3.01% | -1.44% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.76% | 6.69% | -3.93% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.74% | 8.50% | -5.76% |
VTIP vs. HYZD - Expense Ratio Comparison
VTIP has a 0.03% expense ratio, which is lower than HYZD's 0.43% expense ratio.
Dividends
VTIP vs. HYZD - Dividend Comparison
VTIP's dividend yield for the trailing twelve months is around 4.15%, less than HYZD's 5.89% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
HYZD WisdomTree Interest Rate Hedged High Yield Bond Fund | 5.89% | 6.05% | 6.08% | 5.94% | 5.14% | 4.02% | 5.13% | 5.50% | 5.58% | 4.94% | 5.07% | 4.38% |
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 4.15% | 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 HYZD have a correlation of -0.13, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
HYZD has higher volatility (0.44%) compared to VTIP (0.41%). In terms of maximum drawdown, VTIP dropped -6.27% vs HYZD's -25.66%.
On 10-year performance, HYZD leads with 5.36% vs 3.10% for VTIP. On fees, VTIP is cheaper at 0.03% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, HYZD has performed better with a 5.36% return vs 3.10%. 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 0.43% for HYZD.
HYZD has the higher dividend yield at 5.89%, compared with 4.15% for VTIP.
VTIP is categorized as Inflation-Protected Bonds, while HYZD is High Yield Bonds. VTIP tracks Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index, while HYZD tracks WisdomTree U.S. High Yield Corporate Bond, Zero Duration Index. They also come from different issuers: Vanguard and WisdomTree. Their fees differ too: 0.03% for VTIP and 0.43% for HYZD.
HYZD currently has the higher Sharpe Ratio (2.32 vs 2.25), 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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