VTIP vs. ICSH
VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) and ICSH (iShares Ultra Short Duration Bond Active 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 ICSH is a Ultrashort Bond fund actively managed by iShares. VTIP is passively managed, while ICSH is actively managed. Over the past 10 years, VTIP returned 3.09%/yr vs 2.78%/yr for ICSH. At a 0.19 correlation, their price movements are largely independent. VTIP charges 0.03%/yr vs 0.08%/yr for ICSH.
Performance
VTIP vs. ICSH - Performance Comparison
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Returns By Period
In the year-to-date period, VTIP achieves a 1.85% return, which is significantly higher than ICSH's 1.53% return. Over the past 10 years, VTIP has outperformed ICSH with an annualized return of 3.09%, while ICSH has yielded a comparatively lower 2.78% annualized return.
VTIP
- 1D
- -0.04%
- 1M
- -0.06%
- YTD
- 1.85%
- 6M
- 1.95%
- 1Y
- 4.51%
- 3Y*
- 5.25%
- 5Y*
- 3.37%
- 10Y*
- 3.09%
ICSH
- 1D
- 0.00%
- 1M
- 0.32%
- YTD
- 1.53%
- 6M
- 1.81%
- 1Y
- 4.32%
- 3Y*
- 5.16%
- 5Y*
- 3.69%
- 10Y*
- 2.78%
VTIP vs. ICSH - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 1.85% | 6.07% | 4.74% | 4.62% | -2.94% | 5.36% | 4.95% | 4.86% | 0.56% | 0.82% |
ICSH iShares Ultra Short Duration Bond Active ETF | 1.53% | 4.96% | 5.52% | 5.58% | 0.97% | 0.16% | 1.61% | 3.17% | 2.25% | 1.63% |
Correlation
The correlation between VTIP and ICSH is 0.42, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.42 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.45 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.39 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.22 |
Correlation (All Time) Calculated using the full available price history since Dec 13, 2013 | 0.19 |
Over the past year, VTIP and ICSH have become more correlated (0.42) than their long-term average of 0.19, meaning their price movements have been converging.
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Return for Risk
VTIP vs. ICSH — Risk / Return Rank
VTIP
ICSH
VTIP vs. ICSH - 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 Ultra Short Duration Bond Active ETF (ICSH). 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 | ICSH | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -7.92 | ||
| Sortino ratioReturn per unit of downside risk | -22.25 | ||
| Omega ratioGain probability vs. loss probability | 1.65 | 6.59 | -4.94 |
| Calmar ratioReturn relative to maximum drawdown | 6.57 | 43.88 | -37.31 |
| Martin ratioReturn relative to average drawdown | 25.36 | 290.20 | -264.84 |
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Drawdowns
VTIP vs. ICSH - Drawdown Comparison
The maximum VTIP drawdown since its inception was -6.27%, which is greater than ICSH's maximum drawdown of -3.94%. Use the drawdown chart below to compare losses from any high point for VTIP and ICSH.
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Drawdown Indicators
| VTIP | ICSH | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -6.27% | -3.94% | -2.33% |
Max Drawdown (1Y)Largest decline over 1 year | -0.70% | -0.10% | -0.60% |
Max Drawdown (3Y)Largest decline over 3 years | -0.98% | -0.10% | -0.88% |
Max Drawdown (5Y)Largest decline over 5 years | -5.50% | -0.73% | -4.77% |
Max Drawdown (10Y)Largest decline over 10 years | -6.27% | -3.94% | -2.33% |
Current DrawdownCurrent decline from peak | -0.22% | 0.00% | -0.22% |
Average DrawdownAverage peak-to-trough decline | -1.04% | -0.08% | -0.96% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.18% | 0.01% | +0.17% |
Volatility
VTIP vs. ICSH - Volatility Comparison
Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) has a higher volatility of 0.40% compared to iShares Ultra Short Duration Bond Active ETF (ICSH) at 0.13%. This indicates that VTIP's price experiences larger fluctuations and is considered to be riskier than ICSH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VTIP | ICSH | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.40% | 0.13% | +0.27% |
Volatility (6M)Calculated over the trailing 6-month period | 1.04% | 0.29% | +0.75% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.50% | 0.39% | +1.11% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.77% | 0.48% | +2.29% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.74% | 1.06% | +1.68% |
VTIP vs. ICSH - Expense Ratio Comparison
VTIP has a 0.03% expense ratio, which is lower than ICSH's 0.08% 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. ICSH - Dividend Comparison
VTIP's dividend yield for the trailing twelve months is around 3.59%, less than ICSH's 4.34% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ICSH iShares Ultra Short Duration Bond Active ETF | 4.34% | 4.55% | 5.24% | 4.78% | 1.66% | 0.42% | 1.21% | 2.61% | 2.20% | 1.36% | 0.88% | 0.54% |
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 ICSH have a correlation of 0.42, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VTIP has higher volatility (0.40%) compared to ICSH (0.13%). In terms of maximum drawdown, VTIP dropped -6.27% vs ICSH's -3.94%.
On 10-year performance, VTIP leads with 3.09% vs 2.78% for ICSH. On fees, VTIP is cheaper at 0.03% per year. On volatility, ICSH has been the lower-risk option at 0.13%. 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 3.09% return vs 2.78%. 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 0.08% for ICSH.
ICSH has the higher dividend yield at 4.34%, compared with 3.59% for VTIP.
VTIP is categorized as Inflation-Protected Bonds, while ICSH is Ultrashort Bond. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.03% for VTIP and 0.08% for ICSH.
ICSH currently has the higher Sharpe Ratio (10.98 vs 3.07), 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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