VTIP vs. PBTP
VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) and PBTP (Invesco PureBeta 0-5 Yr US TIPS ETF) are both Inflation-Protected Bonds funds - VTIP tracks the Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index while PBTP tracks the ICE BofA U.S. Treasuries Inflation-Linked (0-5 Y). Both are passively managed. Over the past 5 years, VTIP returned 3.28%/yr vs 3.23%/yr for PBTP. Their correlation of 0.86 suggests significant overlap in exposure. VTIP charges 0.03%/yr vs 0.07%/yr for PBTP.
Performance
VTIP vs. PBTP - Performance Comparison
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Returns By Period
The year-to-date returns for both investments are quite close, with VTIP having a 1.36% return and PBTP slightly higher at 1.39%.
VTIP
- 1D
- 0.02%
- 1M
- -0.22%
- YTD
- 1.36%
- 6M
- 1.50%
- 1Y
- 3.58%
- 3Y*
- 5.00%
- 5Y*
- 3.28%
- 10Y*
- 3.03%
PBTP
- 1D
- -0.03%
- 1M
- -0.33%
- YTD
- 1.39%
- 6M
- 1.53%
- 1Y
- 3.50%
- 3Y*
- 4.96%
- 5Y*
- 3.23%
- 10Y*
- —
VTIP vs. PBTP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 1.36% | 6.07% | 4.74% | 4.62% | -2.94% | 5.36% | 4.95% | 4.86% | 0.56% | 0.23% |
PBTP Invesco PureBeta 0-5 Yr US TIPS ETF | 1.39% | 5.98% | 4.72% | 4.53% | -3.02% | 5.51% | 4.89% | 4.72% | 0.59% | 0.04% |
Correlation
The correlation between VTIP and PBTP is 0.89, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.89 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.92 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.95 |
Correlation (All Time) Calculated using the full available price history since Sep 22, 2017 | 0.86 |
The correlation between VTIP and PBTP has been stable across timeframes, ranging from 0.86 to 0.95 - a consistent structural relationship.
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Return for Risk
VTIP vs. PBTP — Risk / Return Rank
VTIP
PBTP
VTIP vs. PBTP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) and Invesco PureBeta 0-5 Yr US TIPS ETF (PBTP). 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 | PBTP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.11 | ||
| Sortino ratioReturn per unit of downside risk | +0.23 | ||
| Omega ratioGain probability vs. loss probability | 1.47 | 1.45 | +0.01 |
| Calmar ratioReturn relative to maximum drawdown | 5.03 | 4.63 | +0.40 |
| Martin ratioReturn relative to average drawdown | 17.90 | 16.62 | +1.28 |
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Drawdowns
VTIP vs. PBTP - Drawdown Comparison
The maximum VTIP drawdown since its inception was -6.27%, which is greater than PBTP's maximum drawdown of -5.44%. Use the drawdown chart below to compare losses from any high point for VTIP and PBTP.
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Drawdown Indicators
| VTIP | PBTP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -6.27% | -5.44% | -0.83% |
Max Drawdown (1Y)Largest decline over 1 year | -0.71% | -0.76% | +0.05% |
Max Drawdown (3Y)Largest decline over 3 years | -0.98% | -1.03% | +0.05% |
Max Drawdown (5Y)Largest decline over 5 years | -5.50% | -5.44% | -0.06% |
Max Drawdown (10Y)Largest decline over 10 years | -6.27% | — | — |
Current DrawdownCurrent decline from peak | -0.69% | -0.76% | +0.07% |
Average DrawdownAverage peak-to-trough decline | -1.04% | -0.75% | -0.29% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.20% | 0.21% | -0.01% |
Volatility
VTIP vs. PBTP - Volatility Comparison
Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) and Invesco PureBeta 0-5 Yr US TIPS ETF (PBTP) have volatilities of 0.65% and 0.63%, 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 | PBTP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.65% | 0.63% | +0.02% |
Volatility (6M)Calculated over the trailing 6-month period | 1.17% | 1.17% | 0.00% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.57% | 1.62% | -0.05% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.77% | 2.85% | -0.08% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.74% | 2.64% | +0.10% |
VTIP vs. PBTP - Expense Ratio Comparison
VTIP has a 0.03% expense ratio, which is lower than PBTP's 0.07% 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. PBTP - Dividend Comparison
VTIP's dividend yield for the trailing twelve months is around 3.61%, less than PBTP's 4.82% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
PBTP Invesco PureBeta 0-5 Yr US TIPS ETF | 4.82% | 3.82% | 2.59% | 2.36% | 5.33% | 3.12% | 1.25% | 2.12% | 2.33% | 0.73% | 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 PBTP have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VTIP has higher volatility (0.65%) compared to PBTP (0.63%). In terms of maximum drawdown, VTIP dropped -6.27% vs PBTP's -5.44%.
On 5-year performance, VTIP leads with 3.28% vs 3.23% for PBTP. 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 5-year period, VTIP has performed better with a 3.28% return vs 3.23%. 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 0.07% for PBTP.
PBTP has the higher dividend yield at 4.82%, compared with 3.61% for VTIP.
VTIP tracks Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index, while PBTP tracks ICE BofA U.S. Treasuries Inflation-Linked (0-5 Y). They also come from different issuers: Vanguard and Invesco. Their fees differ too: 0.03% for VTIP and 0.07% for PBTP.
VTIP currently has the higher Sharpe Ratio (2.28 vs 2.18), 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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