VTWO vs. IBIC
VTWO (Vanguard Russell 2000 ETF) and IBIC (iShares iBonds Oct 2026 Term TIPS ETF) are both exchange-traded funds - VTWO is a Small Cap Blend Equities fund tracking the Russell 2000 Index, while IBIC is a Inflation-Protected Bonds fund tracking the ICE 2026 Maturity US Inflation-Linked Treasury Index. Both are passively managed. Over the past year, VTWO returned 44.30% vs 4.38% for IBIC. At a 0.00 correlation, their price movements are largely independent. VTWO charges 0.06%/yr vs 0.10%/yr for IBIC.
Performance
VTWO vs. IBIC - Performance Comparison
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Returns By Period
In the year-to-date period, VTWO achieves a 21.67% return, which is significantly higher than IBIC's 2.39% return.
VTWO
- 1D
- 0.92%
- 1M
- 4.84%
- YTD
- 21.67%
- 6M
- 18.16%
- 1Y
- 44.30%
- 3Y*
- 19.86%
- 5Y*
- 6.94%
- 10Y*
- 11.83%
IBIC
- 1D
- 0.06%
- 1M
- 0.08%
- YTD
- 2.39%
- 6M
- 2.49%
- 1Y
- 4.38%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
VTWO vs. IBIC - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | |
|---|---|---|---|---|
VTWO Vanguard Russell 2000 ETF | 21.67% | 12.90% | 11.55% | 9.15% |
IBIC iShares iBonds Oct 2026 Term TIPS ETF | 2.39% | 4.96% | 5.25% | 2.17% |
Correlation
The correlation between VTWO and IBIC is -0.18, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | -0.18 |
Correlation (All Time) Calculated using the full available price history since Sep 15, 2023 | 0.00 |
The correlation between VTWO and IBIC shifts across timeframes, from -0.18 (1 year) to 0.00 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
VTWO vs. IBIC — Risk / Return Rank
VTWO
IBIC
VTWO vs. IBIC - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Russell 2000 ETF (VTWO) 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.
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.
| VTWO | IBIC | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.68 | ||
| Sortino ratioReturn per unit of downside risk | -5.83 | ||
| Omega ratioGain probability vs. loss probability | 1.37 | 2.21 | -0.85 |
| Calmar ratioReturn relative to maximum drawdown | 4.05 | 16.41 | -12.36 |
| Martin ratioReturn relative to average drawdown | 14.36 | 58.11 | -43.75 |
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Drawdowns
VTWO vs. IBIC - Drawdown Comparison
The maximum VTWO drawdown since its inception was -41.19%, which is greater than IBIC's maximum drawdown of -0.90%. Use the drawdown chart below to compare losses from any high point for VTWO and IBIC.
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Drawdown Indicators
| VTWO | IBIC | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -41.19% | -0.90% | -40.29% |
Max Drawdown (1Y)Largest decline over 1 year | -10.99% | -0.27% | -10.72% |
Max Drawdown (3Y)Largest decline over 3 years | -27.57% | — | — |
Max Drawdown (5Y)Largest decline over 5 years | -31.88% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -41.19% | — | — |
Current DrawdownCurrent decline from peak | 0.00% | -0.11% | +0.11% |
Average DrawdownAverage peak-to-trough decline | -8.37% | -0.10% | -8.27% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.09% | 0.08% | +3.01% |
Volatility
VTWO vs. IBIC - Volatility Comparison
Vanguard Russell 2000 ETF (VTWO) has a higher volatility of 6.49% compared to iShares iBonds Oct 2026 Term TIPS ETF (IBIC) at 0.16%. This indicates that VTWO's price experiences larger fluctuations and is considered to be riskier than IBIC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VTWO | IBIC | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.49% | 0.16% | +6.33% |
Volatility (6M)Calculated over the trailing 6-month period | 14.25% | 0.67% | +13.58% |
Volatility (1Y)Calculated over the trailing 1-year period | 19.69% | 0.89% | +18.80% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 22.56% | 1.57% | +20.99% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 23.14% | 1.57% | +21.57% |
VTWO vs. IBIC - Expense Ratio Comparison
VTWO has a 0.06% 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
VTWO vs. IBIC - Dividend Comparison
VTWO's dividend yield for the trailing twelve months is around 1.09%, less than IBIC's 3.59% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IBIC iShares iBonds Oct 2026 Term TIPS ETF | 3.59% | 4.43% | 4.65% | 0.83% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
VTWO Vanguard Russell 2000 ETF | 1.09% | 1.25% | 1.21% | 1.45% | 1.48% | 1.13% | 0.92% | 1.36% | 1.41% | 1.18% | 1.27% | 1.23% |
Frequently Asked Questions
VTWO and IBIC have a correlation of -0.18, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VTWO has higher volatility (6.49%) compared to IBIC (0.16%). In terms of maximum drawdown, VTWO dropped -41.19% vs IBIC's -0.90%.
On 1-year performance, VTWO leads with 44.30% vs 4.38% for IBIC. On fees, VTWO is cheaper at 0.06% per year. On volatility, IBIC has been the lower-risk option at 0.16%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, VTWO has performed better with a 44.30% return vs 4.38%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VTWO is cheaper with a 0.06% expense ratio, compared with 0.10% for IBIC.
IBIC has the higher dividend yield at 3.59%, compared with 1.09% for VTWO.
VTWO is categorized as Small Cap Blend Equities, while IBIC is Inflation-Protected Bonds. VTWO tracks Russell 2000 Index, while IBIC tracks ICE 2026 Maturity US Inflation-Linked Treasury Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.06% for VTWO and 0.10% for IBIC.
IBIC currently has the higher Sharpe Ratio (4.94 vs 2.27), 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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