VTIP vs. IGHG

Last updated Jun 3, 2026

VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) and IGHG (ProShares Investment Grade-Interest Rate Hedged) 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 IGHG is a Corporate Bonds fund tracking the Citi Corporate Investment Grade (Treasury Rate-Hedged) Index. Both are passively managed. Over the past 10 years, VTIP returned 3.14%/yr vs 4.72%/yr for IGHG. At a correlation of -0.06, they often move in opposite directions. VTIP charges 0.03%/yr vs 0.30%/yr for IGHG.

Performance

VTIP vs. IGHG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) and ProShares Investment Grade-Interest Rate Hedged (IGHG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with VTIP having a 2.05% return and IGHG slightly higher at 2.12%. Over the past 10 years, VTIP has underperformed IGHG with an annualized return of 3.14%, while IGHG has yielded a comparatively higher 4.72% annualized return.

VTIP

• 1D: 0.02%
• 1M: 0.04%
• YTD: 2.05%
• 6M: 2.11%
• 1Y: 4.63%
• 3Y*: 5.26%
• 5Y*: 3.39%
• 10Y*: 3.14%

IGHG

• 1D: -0.06%
• 1M: 0.78%
• YTD: 2.12%
• 6M: 2.43%
• 1Y: 5.89%
• 3Y*: 8.55%
• 5Y*: 5.22%
• 10Y*: 4.72%

*Multi-year figures are annualized to reflect compound growth (CAGR)

VTIP vs. IGHG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VTIP Vanguard Short-Term Inflation-Protected Securities ETF	2.05%	6.07%	4.74%	4.62%	-2.94%	5.36%	4.95%	4.86%	0.56%	0.82%
IGHG ProShares Investment Grade-Interest Rate Hedged	2.12%	5.65%	9.20%	11.58%	-0.90%	0.88%	0.61%	12.73%	-3.96%	4.49%

Correlation

The correlation between VTIP and IGHG is -0.21, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.21
Correlation (3Y) Calculated over the trailing 3-year period	-0.11
Correlation (5Y) Calculated over the trailing 5-year period	-0.02
Correlation (10Y) Calculated over the trailing 10-year period	-0.05
Correlation (All Time) Calculated using the full available price history since Nov 8, 2013	-0.06

The correlation between VTIP and IGHG shifts across timeframes, from -0.21 (1 year) to -0.02 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

VTIP vs. IGHG — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VTIP

VTIP Risk / Return Rank: 93
VTIP Sharpe Ratio Rank: 90
VTIP Sortino Ratio Rank: 95
VTIP Omega Ratio Rank: 93
VTIP Calmar Ratio Rank: 93
VTIP Martin Ratio Rank: 93

IGHG

IGHG Risk / Return Rank: 59
IGHG Sharpe Ratio Rank: 49
IGHG Sortino Ratio Rank: 53
IGHG Omega Ratio Rank: 51
IGHG Calmar Ratio Rank: 71
IGHG Martin Ratio Rank: 68

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

VTIP vs. IGHG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) and ProShares Investment Grade-Interest Rate Hedged (IGHG). 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	IGHG	Difference
Sharpe ratio Return per unit of total volatility	3.10	1.72	+1.38
Sortino ratio Return per unit of downside risk	5.28	2.58	+2.69
Omega ratio Gain probability vs. loss probability	1.65	1.32	+0.33
Calmar ratio Return relative to maximum drawdown	6.54	3.64	+2.90
Martin ratio Return relative to average drawdown	25.31	12.86	+12.45
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VTIP vs. IGHG - Sharpe Ratio Comparison

The current VTIP Sharpe Ratio is 3.10, which is higher than the IGHG Sharpe Ratio of 1.72. The chart below compares the historical Sharpe Ratios of VTIP and IGHG, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VTIP	IGHG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.10	1.72	+1.38
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.23	1.04	+0.18
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.15	0.63	+0.52
Sharpe Ratio (All Time) Calculated using the full available price history	0.89	0.53	+0.36

Drawdowns

VTIP vs. IGHG - Drawdown Comparison

The maximum VTIP drawdown since its inception was -6.27%, smaller than the maximum IGHG drawdown of -25.16%. Use the drawdown chart below to compare losses from any high point for VTIP and IGHG.

Drawdown Indicators

	VTIP	IGHG	Difference
Max Drawdown Largest peak-to-trough decline	-6.27%	-25.16%	+18.89%
Max Drawdown (1Y) Largest decline over 1 year	-0.70%	-1.75%	+1.05%
Max Drawdown (3Y) Largest decline over 3 years	-0.98%	-3.74%	+2.76%
Max Drawdown (5Y) Largest decline over 5 years	-5.50%	-8.75%	+3.25%
Max Drawdown (10Y) Largest decline over 10 years	-6.27%	-25.16%	+18.89%
Current Drawdown Current decline from peak	-0.02%	-0.16%	+0.14%
Average Drawdown Average peak-to-trough decline	-1.04%	-2.30%	+1.26%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.18%	0.50%	-0.32%

Volatility

VTIP vs. IGHG - Volatility Comparison

The current volatility for Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is 0.43%, while ProShares Investment Grade-Interest Rate Hedged (IGHG) has a volatility of 0.62%. This indicates that VTIP experiences smaller price fluctuations and is considered to be less risky than IGHG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTIP	IGHG	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.43%	0.62%	-0.19%
Volatility (6M) Calculated over the trailing 6-month period	1.03%	2.53%	-1.50%
Volatility (1Y) Calculated over the trailing 1-year period	1.50%	3.47%	-1.97%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.78%	5.02%	-2.24%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.74%	7.46%	-4.72%

VTIP vs. IGHG - Expense Ratio Comparison

VTIP has a 0.03% expense ratio, which is lower than IGHG's 0.30% expense ratio.

Dividends

VTIP vs. IGHG - Dividend Comparison

VTIP's dividend yield for the trailing twelve months is around 3.58%, less than IGHG's 5.12% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IGHG ProShares Investment Grade-Interest Rate Hedged	5.12%	5.14%	5.06%	4.99%	3.55%	2.50%	2.79%	3.48%	4.13%	3.36%	3.37%	3.65%
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%	0.00%

Frequently Asked Questions

Can I hold both VTIP and IGHG in my portfolio?

VTIP and IGHG have a correlation of -0.21, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VTIP or IGHG?

IGHG has higher volatility (0.62%) compared to VTIP (0.43%). In terms of maximum drawdown, VTIP dropped -6.27% vs IGHG's -25.16%.

Which ETF is better, VTIP or IGHG?

On 10-year performance, IGHG leads with 4.72% vs 3.14% for VTIP. On fees, VTIP is cheaper at 0.03% per year. On volatility, VTIP has been the lower-risk option at 0.43%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VTIP or IGHG?

Over the 10-year period, IGHG has performed better with a 4.72% return vs 3.14%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VTIP or IGHG?

VTIP is cheaper with a 0.03% expense ratio, compared with 0.30% for IGHG.

Which ETF pays a higher dividend yield, VTIP or IGHG?

IGHG has the higher dividend yield at 5.12%, compared with 3.58% for VTIP.

What is the main difference between VTIP and IGHG?

VTIP is categorized as Inflation-Protected Bonds, while IGHG is Corporate Bonds. VTIP tracks Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index, while IGHG tracks Citi Corporate Investment Grade (Treasury Rate-Hedged) Index. They also come from different issuers: Vanguard and ProShares. Their fees differ too: 0.03% for VTIP and 0.30% for IGHG.

Which has better risk-adjusted returns?

VTIP currently has the higher Sharpe Ratio (3.10 vs 1.72), 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.