VTIP vs. STIP
Compare and contrast key facts about Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) and iShares 0-5 Year TIPS Bond ETF (STIP).
VTIP and STIP are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VTIP is a passively managed fund by Vanguard that tracks the performance of the Barclays Capital U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Years Index (Series-L). It was launched on Oct 12, 2012. STIP is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Years Index (Series-L). It was launched on Dec 1, 2010. Both VTIP and STIP are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VTIP or STIP.
Performance
VTIP vs. STIP - Performance Comparison
Returns By Period
As of year-to-date, both investments have demonstrated similar returns, with VTIP at 4.55% and STIP at 4.55%. Over a longer period, both investments have demonstrated similar performance, with their 10-year annualized returns being quite close: VTIP at 2.40% and STIP at 2.40%.
VTIP
4.55%
-0.02%
3.12%
6.57%
3.52%
2.40%
STIP
4.55%
-0.02%
3.13%
6.03%
3.49%
2.40%
Key characteristics
| VTIP | STIP | |
|---|---|---|
| Sharpe Ratio | 3.07 | 2.98 |
| Sortino Ratio | 5.45 | 4.97 |
| Omega Ratio | 1.71 | 1.65 |
| Calmar Ratio | 4.84 | 4.50 |
| Martin Ratio | 23.62 | 22.06 |
| Ulcer Index | 0.28% | 0.27% |
| Daily Std Dev | 2.13% | 2.02% |
| Max Drawdown | -6.27% | -5.50% |
| Current Drawdown | -0.47% | -0.48% |
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VTIP vs. STIP - Expense Ratio Comparison
VTIP has a 0.04% 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%.
Correlation
The correlation between VTIP and STIP is 0.90, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Risk-Adjusted Performance
VTIP vs. STIP - Risk-Adjusted Performance 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.
Dividends
VTIP vs. STIP - Dividend Comparison
VTIP's dividend yield for the trailing twelve months is around 3.38%, more than STIP's 2.46% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 3.38% | 3.36% | 6.84% | 4.68% | 1.20% | 1.95% | 2.45% | 1.52% | 0.76% | 0.00% | 0.82% | 0.05% |
STIP iShares 0-5 Year TIPS Bond ETF | 2.46% | 2.84% | 6.04% | 4.15% | 1.40% | 2.06% | 2.43% | 1.59% | 0.89% | 0.00% | 0.75% | 0.31% |
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. For additional features, visit the drawdowns tool.
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 0.45% and 0.44%, 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.