VTIP vs. VGSH
Compare and contrast key facts about Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) and Vanguard Short-Term Treasury ETF (VGSH).
VTIP and VGSH 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. VGSH is a passively managed fund by Vanguard that tracks the performance of the Barclays U.S. 1-3 Year Government Float Adjusted Index. It was launched on Nov 19, 2009. Both VTIP and VGSH 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 VGSH.
Key characteristics
| VTIP | VGSH | |
|---|---|---|
| YTD Return | 1.17% | 0.35% |
| 1Y Return | 3.45% | 2.18% |
| 3Y Return (Ann) | 2.09% | 0.00% |
| 5Y Return (Ann) | 3.29% | 1.10% |
| 10Y Return (Ann) | 2.03% | 1.00% |
| Sharpe Ratio | 1.39 | 1.17 |
| Daily Std Dev | 2.51% | 2.00% |
| Max Drawdown | -6.27% | -5.70% |
| Current Drawdown | 0.00% | -0.15% |
Correlation
The correlation between VTIP and VGSH is 0.53, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
VTIP vs. VGSH - Performance Comparison
In the year-to-date period, VTIP achieves a 1.17% return, which is significantly higher than VGSH's 0.35% return. Over the past 10 years, VTIP has outperformed VGSH with an annualized return of 2.03%, while VGSH has yielded a comparatively lower 1.00% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VTIP vs. VGSH - Expense Ratio Comparison
Both VTIP and VGSH have an expense ratio of 0.04%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Risk-Adjusted Performance
VTIP vs. VGSH - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) and Vanguard Short-Term Treasury ETF (VGSH). 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. VGSH - Dividend Comparison
VTIP's dividend yield for the trailing twelve months is around 3.31%, less than VGSH's 3.79% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 3.31% | 3.36% | 6.84% | 4.68% | 1.20% | 1.95% | 2.45% | 1.52% | 0.76% | 0.00% | 0.82% | 0.05% |
VGSH Vanguard Short-Term Treasury ETF | 3.79% | 3.31% | 1.15% | 0.66% | 1.74% | 2.28% | 1.79% | 1.10% | 0.82% | 0.71% | 0.46% | 0.34% |
Drawdowns
VTIP vs. VGSH - Drawdown Comparison
The maximum VTIP drawdown since its inception was -6.27%, which is greater than VGSH's maximum drawdown of -5.70%. Use the drawdown chart below to compare losses from any high point for VTIP and VGSH. For additional features, visit the drawdowns tool.
Volatility
VTIP vs. VGSH - Volatility Comparison
The current volatility for Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is 0.58%, while Vanguard Short-Term Treasury ETF (VGSH) has a volatility of 0.62%. This indicates that VTIP experiences smaller price fluctuations and is considered to be less risky than VGSH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.