VTIP vs. LDRI
VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) and LDRI (iShares iBonds 1-5 Year TIPS Ladder ETF) are both Inflation-Protected Bonds funds - VTIP tracks the Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index while LDRI tracks the BlackRock iBonds® 1-5 Year TIPS Ladder Index. Both are passively managed. Over the past year, VTIP returned 3.60% vs 3.78% for LDRI. A 0.68 correlation means they provide meaningful diversification when combined. VTIP charges 0.03%/yr vs 0.10%/yr for LDRI.
Performance
VTIP vs. LDRI - Performance Comparison
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Returns By Period
The year-to-date returns for both investments are quite close, with VTIP having a 1.38% return and LDRI slightly higher at 1.41%.
VTIP
- 1D
- 0.02%
- 1M
- -0.20%
- YTD
- 1.38%
- 6M
- 1.47%
- 1Y
- 3.60%
- 3Y*
- 5.01%
- 5Y*
- 3.27%
- 10Y*
- 3.03%
LDRI
- 1D
- 0.04%
- 1M
- -0.12%
- YTD
- 1.41%
- 6M
- 1.59%
- 1Y
- 3.78%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
VTIP vs. LDRI - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 1.38% | 6.07% | 0.12% |
LDRI iShares iBonds 1-5 Year TIPS Ladder ETF | 1.41% | 5.94% | 0.10% |
Correlation
The correlation between VTIP and LDRI 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 Nov 8, 2024 | 0.68 |
The correlation between VTIP and LDRI has been stable across timeframes, ranging from 0.68 to 0.69 - a consistent structural relationship.
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Return for Risk
VTIP vs. LDRI — Risk / Return Rank
VTIP
LDRI
VTIP vs. LDRI - 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 1-5 Year TIPS Ladder ETF (LDRI). 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 | LDRI | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.34 | ||
| Sortino ratioReturn per unit of downside risk | +0.74 | ||
| Omega ratioGain probability vs. loss probability | 1.47 | 1.43 | +0.04 |
| Calmar ratioReturn relative to maximum drawdown | 5.06 | 6.33 | -1.27 |
| Martin ratioReturn relative to average drawdown | 17.61 | 16.06 | +1.55 |
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Drawdowns
VTIP vs. LDRI - Drawdown Comparison
The maximum VTIP drawdown since its inception was -6.27%, which is greater than LDRI's maximum drawdown of -0.85%. Use the drawdown chart below to compare losses from any high point for VTIP and LDRI.
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Drawdown Indicators
| VTIP | LDRI | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -6.27% | -0.85% | -5.42% |
Max Drawdown (1Y)Largest decline over 1 year | -0.71% | -0.60% | -0.11% |
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 | -0.67% | -0.55% | -0.12% |
Average DrawdownAverage peak-to-trough decline | -1.04% | -0.20% | -0.84% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.20% | 0.24% | -0.04% |
Volatility
VTIP vs. LDRI - Volatility Comparison
Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) and iShares iBonds 1-5 Year TIPS Ladder ETF (LDRI) have volatilities of 0.64% and 0.64%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VTIP | LDRI | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.64% | 0.64% | 0.00% |
Volatility (6M)Calculated over the trailing 6-month period | 1.17% | 1.48% | -0.31% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.57% | 1.94% | -0.37% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.77% | 2.29% | +0.48% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.74% | 2.29% | +0.45% |
VTIP vs. LDRI - Expense Ratio Comparison
VTIP has a 0.03% expense ratio, which is lower than LDRI'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. LDRI - Dividend Comparison
VTIP's dividend yield for the trailing twelve months is around 3.61%, more than LDRI's 3.54% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
LDRI iShares iBonds 1-5 Year TIPS Ladder ETF | 3.54% | 4.23% | 0.83% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 3.61% | 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 LDRI 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.
LDRI has higher volatility (0.64%) compared to VTIP (0.64%). In terms of maximum drawdown, VTIP dropped -6.27% vs LDRI's -0.85%.
On 1-year performance, LDRI leads with 3.78% vs 3.60% 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 1-year period, LDRI has performed better with a 3.78% return vs 3.60%. 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 LDRI.
VTIP has the higher dividend yield at 3.61%, compared with 3.54% for LDRI.
VTIP tracks Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index, while LDRI tracks BlackRock iBonds® 1-5 Year TIPS Ladder Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.03% for VTIP and 0.10% for LDRI.
VTIP currently has the higher Sharpe Ratio (2.30 vs 1.96), 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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