VTIP vs. IBID
VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) and IBID (iShares iBonds Oct 2027 Term TIPS ETF) are both Inflation-Protected Bonds funds - VTIP tracks the Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index while IBID tracks the ICE 2027 Maturity US Inflation-Linked Treasury Index. Both are passively managed. Over the past year, VTIP returned 4.70% vs 4.83% for IBID. Their correlation of 0.85 suggests significant overlap in exposure. VTIP charges 0.03%/yr vs 0.10%/yr for IBID.
Performance
VTIP vs. IBID - Performance Comparison
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Returns By Period
In the year-to-date period, VTIP achieves a 2.05% return, which is significantly lower than IBID's 2.46% return.
VTIP
- 1D
- 0.00%
- 1M
- 0.04%
- YTD
- 2.05%
- 6M
- 2.03%
- 1Y
- 4.70%
- 3Y*
- 5.26%
- 5Y*
- 3.37%
- 10Y*
- 3.14%
IBID
- 1D
- 0.08%
- 1M
- 0.49%
- YTD
- 2.46%
- 6M
- 2.57%
- 1Y
- 4.83%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
VTIP vs. IBID - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | |
|---|---|---|---|---|
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 2.05% | 6.07% | 4.74% | 2.21% |
IBID iShares iBonds Oct 2027 Term TIPS ETF | 2.46% | 5.66% | 4.71% | 2.61% |
Correlation
The correlation between VTIP and IBID 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 (All Time) Calculated using the full available price history since Sep 18, 2023 | 0.85 |
The correlation between VTIP and IBID shifts across timeframes, from 0.69 (1 year) to 0.85 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
VTIP vs. IBID — Risk / Return Rank
VTIP
IBID
VTIP vs. IBID - 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 iBonds Oct 2027 Term TIPS ETF (IBID). 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 | IBID | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.76 | ||
| Sortino ratioReturn per unit of downside risk | -1.39 | ||
| Omega ratioGain probability vs. loss probability | 1.67 | 1.94 | -0.27 |
| Calmar ratioReturn relative to maximum drawdown | 6.75 | 13.33 | -6.58 |
| Martin ratioReturn relative to average drawdown | 26.06 | 39.52 | -13.46 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VTIP | IBID | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 3.15 | 3.91 | -0.76 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 1.22 | — | — |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 1.15 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.89 | 2.56 | -1.66 |
Drawdowns
VTIP vs. IBID - Drawdown Comparison
The maximum VTIP drawdown since its inception was -6.27%, which is greater than IBID's maximum drawdown of -1.28%. Use the drawdown chart below to compare losses from any high point for VTIP and IBID.
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Drawdown Indicators
| VTIP | IBID | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -6.27% | -1.28% | -4.99% |
Max Drawdown (1Y)Largest decline over 1 year | -0.70% | -0.36% | -0.34% |
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 | -0.02% | 0.00% | -0.02% |
Average DrawdownAverage peak-to-trough decline | -1.04% | -0.22% | -0.82% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.18% | 0.12% | +0.06% |
Volatility
VTIP vs. IBID - Volatility Comparison
Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) has a higher volatility of 0.43% compared to iShares iBonds Oct 2027 Term TIPS ETF (IBID) at 0.32%. This indicates that VTIP's price experiences larger fluctuations and is considered to be riskier than IBID based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VTIP | IBID | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.43% | 0.32% | +0.11% |
Volatility (6M)Calculated over the trailing 6-month period | 1.02% | 0.80% | +0.22% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.50% | 1.25% | +0.25% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.77% | 2.25% | +0.52% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.74% | 2.25% | +0.49% |
VTIP vs. IBID - Expense Ratio Comparison
VTIP has a 0.03% expense ratio, which is lower than IBID's 0.10% 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. IBID - Dividend Comparison
VTIP's dividend yield for the trailing twelve months is around 3.58%, less than IBID's 3.66% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
IBID iShares iBonds Oct 2027 Term TIPS ETF | 3.66% | 4.43% | 4.24% | 0.81% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 3.58% | 3.81% | 2.70% | 2.86% | 6.84% | 4.68% | 1.20% | 1.95% | 2.45% | 1.52% | 0.76% |
Frequently Asked Questions
VTIP and IBID 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.
VTIP has higher volatility (0.43%) compared to IBID (0.32%). In terms of maximum drawdown, VTIP dropped -6.27% vs IBID's -1.28%.
On 1-year performance, IBID leads with 4.83% vs 4.70% for VTIP. On fees, VTIP is cheaper at 0.03% per year. On volatility, IBID has been the lower-risk option at 0.32%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, IBID has performed better with a 4.83% return vs 4.70%. 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 0.10% for IBID.
IBID has the higher dividend yield at 3.66%, compared with 3.58% for VTIP.
VTIP tracks Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index, while IBID tracks ICE 2027 Maturity US Inflation-Linked Treasury Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.03% for VTIP and 0.10% for IBID.
IBID currently has the higher Sharpe Ratio (3.91 vs 3.15), 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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