VTIP vs. STIP
VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) and STIP (iShares 0-5 Year TIPS Bond ETF) are both Inflation-Protected Bonds funds - VTIP tracks the Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index while STIP tracks the Bloomberg US Treasury Inflation-Protected Securities (TIPS) 0-5 Years Index (Series-L). Both are passively managed. Over the past 10 years, VTIP returned 3.03%/yr vs 3.07%/yr for STIP. Their correlation of 0.90 suggests significant overlap in exposure. VTIP charges 0.03%/yr vs 0.06%/yr for STIP.
Performance
VTIP vs. STIP - Performance Comparison
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Returns By Period
The year-to-date returns for both stocks are quite close, with VTIP having a 1.34% return and STIP slightly lower at 1.33%. Both investments have delivered pretty close results over the past 10 years, with VTIP having a 3.03% annualized return and STIP not far ahead at 3.07%.
VTIP
- 1D
- -0.18%
- 1M
- -0.24%
- YTD
- 1.34%
- 6M
- 1.46%
- 1Y
- 3.64%
- 3Y*
- 5.00%
- 5Y*
- 3.26%
- 10Y*
- 3.03%
STIP
- 1D
- -0.22%
- 1M
- -0.30%
- YTD
- 1.33%
- 6M
- 1.45%
- 1Y
- 3.64%
- 3Y*
- 4.99%
- 5Y*
- 3.26%
- 10Y*
- 3.07%
VTIP vs. STIP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 1.34% | 6.07% | 4.74% | 4.62% | -2.94% | 5.36% | 4.95% | 4.86% | 0.56% | 0.82% |
STIP iShares 0-5 Year TIPS Bond ETF | 1.33% | 6.03% | 4.77% | 4.63% | -3.02% | 5.68% | 5.18% | 4.89% | 0.54% | 0.74% |
Correlation
The correlation between VTIP and STIP is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.96 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.97 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.97 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.93 |
Correlation (All Time) Calculated using the full available price history since Oct 16, 2012 | 0.90 |
The correlation between VTIP and STIP has been stable across timeframes, ranging from 0.90 to 0.97 - a consistent structural relationship.
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Return for Risk
VTIP vs. STIP — Risk / Return Rank
VTIP
STIP
VTIP vs. STIP - 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 0-5 Year TIPS Bond ETF (STIP). 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 | STIP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.06 | ||
| Sortino ratioReturn per unit of downside risk | -0.11 | ||
| Omega ratioGain probability vs. loss probability | 1.47 | 1.49 | -0.02 |
| Calmar ratioReturn relative to maximum drawdown | 5.12 | 5.04 | +0.08 |
| Martin ratioReturn relative to average drawdown | 18.66 | 19.01 | -0.35 |
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Drawdowns
VTIP vs. STIP - Drawdown Comparison
The maximum VTIP drawdown since its inception was -6.27%, which is greater than STIP's maximum drawdown of -5.50%. Use the drawdown chart below to compare losses from any high point for VTIP and STIP.
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Drawdown Indicators
| VTIP | STIP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -6.27% | -5.50% | -0.77% |
Max Drawdown (1Y)Largest decline over 1 year | -0.71% | -0.73% | +0.02% |
Max Drawdown (3Y)Largest decline over 3 years | -0.98% | -0.95% | -0.03% |
Max Drawdown (5Y)Largest decline over 5 years | -5.50% | -5.50% | 0.00% |
Max Drawdown (10Y)Largest decline over 10 years | -6.27% | -5.50% | -0.77% |
Current DrawdownCurrent decline from peak | -0.71% | -0.73% | +0.02% |
Average DrawdownAverage peak-to-trough decline | -1.04% | -0.99% | -0.05% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.20% | 0.19% | +0.01% |
Volatility
VTIP vs. STIP - Volatility Comparison
Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) and iShares 0-5 Year TIPS Bond ETF (STIP) have volatilities of 0.65% and 0.65%, 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 | STIP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.65% | 0.65% | 0.00% |
Volatility (6M)Calculated over the trailing 6-month period | 1.17% | 1.14% | +0.03% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.58% | 1.54% | +0.04% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.77% | 2.74% | +0.03% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.74% | 2.46% | +0.28% |
VTIP vs. STIP - Expense Ratio Comparison
VTIP has a 0.03% expense ratio, which is lower than STIP's 0.06% 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. STIP - Dividend Comparison
VTIP's dividend yield for the trailing twelve months is around 3.61%, less than STIP's 4.33% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
STIP iShares 0-5 Year TIPS Bond ETF | 4.33% | 4.11% | 2.62% | 2.84% | 6.04% | 4.15% | 1.40% | 2.06% | 2.44% | 1.59% | 0.89% |
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
With a correlation of 0.96, VTIP and STIP move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
STIP has higher volatility (0.65%) compared to VTIP (0.65%). In terms of maximum drawdown, VTIP dropped -6.27% vs STIP's -5.50%.
On 10-year performance, STIP leads with 3.07% vs 3.03% 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 10-year period, STIP has performed better with a 3.07% return vs 3.03%. 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 0.06% for STIP.
STIP has the higher dividend yield at 4.33%, compared with 3.61% for VTIP.
VTIP tracks Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index, while STIP tracks Bloomberg US Treasury Inflation-Protected Securities (TIPS) 0-5 Years Index (Series-L). They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.03% for VTIP and 0.06% for STIP.
STIP currently has the higher Sharpe Ratio (2.38 vs 2.32), 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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