VTP vs. IBIC

Last updated Jun 4, 2026

VTP (Vanguard Total Inflation-Protected Securities ETF) and IBIC (iShares iBonds Oct 2026 Term TIPS ETF) are both Inflation-Protected Bonds funds - VTP tracks the ICE U.S. Treasury Inflation Linked Bond Index 0-5 while IBIC tracks the ICE 2026 Maturity US Inflation-Linked Treasury Index. Both are passively managed. At a 0.08 correlation, their price movements are largely independent. VTP charges 0.05%/yr vs 0.10%/yr for IBIC.

Performance

VTP vs. IBIC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Total Inflation-Protected Securities ETF (VTP) and iShares iBonds Oct 2026 Term TIPS ETF (IBIC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTP achieves a 1.55% return, which is significantly lower than IBIC's 2.37% return.

VTP

• 1D: -0.16%
• 1M: -0.08%
• YTD: 1.55%
• 6M: 1.09%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

IBIC

• 1D: 0.02%
• 1M: 0.27%
• YTD: 2.37%
• 6M: 2.51%
• 1Y: 4.54%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

VTP vs. IBIC - Yearly Performance Comparison

	2026 (YTD)	2025
VTP Vanguard Total Inflation-Protected Securities ETF	1.55%	2.27%
IBIC iShares iBonds Oct 2026 Term TIPS ETF	2.37%	1.75%

Correlation

The correlation between VTP and IBIC is 0.08, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jul 10, 2025	0.08

Return for Risk

VTP vs. IBIC — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

IBIC

IBIC Risk / Return Rank: 98
IBIC Sharpe Ratio Rank: 97
IBIC Sortino Ratio Rank: 98
IBIC Omega Ratio Rank: 98
IBIC Calmar Ratio Rank: 98
IBIC Martin Ratio Rank: 98

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

VTP vs. IBIC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Inflation-Protected Securities ETF (VTP) and iShares iBonds Oct 2026 Term TIPS ETF (IBIC). 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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	VTP	IBIC	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	5.05	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.31	3.49	-2.18

Drawdowns

VTP vs. IBIC - Drawdown Comparison

The maximum VTP drawdown since its inception was -1.92%, which is greater than IBIC's maximum drawdown of -0.90%. Use the drawdown chart below to compare losses from any high point for VTP and IBIC.

Drawdown Indicators

	VTP	IBIC	Difference
Max Drawdown Largest peak-to-trough decline	-1.92%	-0.90%	-1.02%
Max Drawdown (1Y) Largest decline over 1 year	—	-0.26%	—
Current Drawdown Current decline from peak	-0.30%	-0.13%	-0.17%
Average Drawdown Average peak-to-trough decline	-0.52%	-0.10%	-0.42%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.07%	—

Volatility

Volatility by Period

	VTP	IBIC	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	0.33%	—
Volatility (6M) Calculated over the trailing 6-month period	—	0.67%	—
Volatility (1Y) Calculated over the trailing 1-year period	3.26%	0.90%	+2.36%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.26%	1.58%	+1.68%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.26%	1.58%	+1.68%

VTP vs. IBIC - Expense Ratio Comparison

VTP has a 0.05% expense ratio, which is lower than IBIC'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

VTP vs. IBIC - Dividend Comparison

VTP's dividend yield for the trailing twelve months is around 1.61%, less than IBIC's 3.59% yield.

Position	TTM	2025	2024	2023
IBIC iShares iBonds Oct 2026 Term TIPS ETF	3.59%	4.43%	4.65%	0.83%
VTP Vanguard Total Inflation-Protected Securities ETF	1.61%	1.56%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VTP and IBIC in my portfolio?

VTP and IBIC have a correlation of 0.08, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VTP or IBIC?

On fees, VTP is cheaper at 0.05% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VTP or IBIC?

VTP is cheaper with a 0.05% expense ratio, compared with 0.10% for IBIC.

Which ETF pays a higher dividend yield, VTP or IBIC?

IBIC has the higher dividend yield at 3.59%, compared with 1.61% for VTP.

What is the main difference between VTP and IBIC?

VTP tracks ICE U.S. Treasury Inflation Linked Bond Index 0-5, while IBIC tracks ICE 2026 Maturity US Inflation-Linked Treasury Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.05% for VTP and 0.10% for IBIC.