VWO vs. IBIC
VWO (Vanguard FTSE Emerging Markets ETF) and IBIC (iShares iBonds Oct 2026 Term TIPS ETF) are both exchange-traded funds - VWO is a Emerging Markets Equities fund tracking the FTSE Emerging 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, VWO returned 27.03% vs 4.42% for IBIC. At a correlation of -0.01, they often move in opposite directions. VWO charges 0.08%/yr vs 0.10%/yr for IBIC.
Performance
VWO vs. IBIC - Performance Comparison
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Returns By Period
In the year-to-date period, VWO achieves a 10.55% return, which is significantly higher than IBIC's 2.43% return.
VWO
- 1D
- -3.07%
- 1M
- 0.76%
- YTD
- 10.55%
- 6M
- 10.67%
- 1Y
- 27.03%
- 3Y*
- 17.42%
- 5Y*
- 5.09%
- 10Y*
- 8.97%
IBIC
- 1D
- 0.04%
- 1M
- 0.12%
- YTD
- 2.43%
- 6M
- 2.57%
- 1Y
- 4.42%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
VWO vs. IBIC - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | |
|---|---|---|---|---|
VWO Vanguard FTSE Emerging Markets ETF | 10.55% | 25.60% | 10.59% | 3.87% |
IBIC iShares iBonds Oct 2026 Term TIPS ETF | 2.43% | 4.96% | 5.25% | 2.17% |
Correlation
The correlation between VWO and IBIC is -0.22, 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 | -0.22 |
Correlation (All Time) Calculated using the full available price history since Sep 15, 2023 | -0.01 |
Over the past year, the inverse relationship between VWO and IBIC has strengthened: their correlation has moved from -0.01 to -0.22, meaning they now move in opposite directions more often than their long-term average.
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Return for Risk
VWO vs. IBIC — Risk / Return Rank
VWO
IBIC
VWO vs. IBIC - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Emerging Markets ETF (VWO) 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.
| VWO | IBIC | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -3.38 | ||
| Sortino ratioReturn per unit of downside risk | -6.76 | ||
| Omega ratioGain probability vs. loss probability | 1.30 | 2.22 | -0.92 |
| Calmar ratioReturn relative to maximum drawdown | 2.43 | 16.56 | -14.13 |
| Martin ratioReturn relative to average drawdown | 8.56 | 58.67 | -50.11 |
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Drawdowns
VWO vs. IBIC - Drawdown Comparison
The maximum VWO drawdown since its inception was -67.68%, which is greater than IBIC's maximum drawdown of -0.90%. Use the drawdown chart below to compare losses from any high point for VWO and IBIC.
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Drawdown Indicators
| VWO | IBIC | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -67.68% | -0.90% | -66.78% |
Max Drawdown (1Y)Largest decline over 1 year | -11.17% | -0.27% | -10.90% |
Max Drawdown (3Y)Largest decline over 3 years | -17.37% | — | — |
Max Drawdown (5Y)Largest decline over 5 years | -32.60% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -36.39% | — | — |
Current DrawdownCurrent decline from peak | -3.07% | -0.08% | -2.99% |
Average DrawdownAverage peak-to-trough decline | -15.79% | -0.10% | -15.69% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.17% | 0.08% | +3.09% |
Volatility
VWO vs. IBIC - Volatility Comparison
Vanguard FTSE Emerging Markets ETF (VWO) has a higher volatility of 7.37% compared to iShares iBonds Oct 2026 Term TIPS ETF (IBIC) at 0.17%. This indicates that VWO'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
| VWO | IBIC | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.37% | 0.17% | +7.20% |
Volatility (6M)Calculated over the trailing 6-month period | 14.62% | 0.67% | +13.95% |
Volatility (1Y)Calculated over the trailing 1-year period | 16.94% | 0.89% | +16.05% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.58% | 1.56% | +16.02% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 19.18% | 1.56% | +17.62% |
VWO vs. IBIC - Expense Ratio Comparison
VWO has a 0.08% 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
VWO vs. IBIC - Dividend Comparison
VWO's dividend yield for the trailing twelve months is around 2.33%, less than IBIC's 3.58% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IBIC iShares iBonds Oct 2026 Term TIPS ETF | 3.58% | 4.43% | 4.65% | 0.83% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
VWO Vanguard FTSE Emerging Markets ETF | 2.33% | 2.79% | 3.20% | 3.52% | 4.11% | 2.63% | 1.91% | 3.23% | 2.88% | 2.30% | 2.52% | 3.26% |
Frequently Asked Questions
VWO and IBIC have a correlation of -0.22, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VWO has higher volatility (7.37%) compared to IBIC (0.17%). In terms of maximum drawdown, VWO dropped -67.68% vs IBIC's -0.90%.
On 1-year performance, VWO leads with 27.03% vs 4.42% for IBIC. On fees, VWO is cheaper at 0.08% per year. On volatility, IBIC has been the lower-risk option at 0.17%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, VWO has performed better with a 27.03% return vs 4.42%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VWO is cheaper with a 0.08% expense ratio, compared with 0.10% for IBIC.
IBIC has the higher dividend yield at 3.58%, compared with 2.33% for VWO.
VWO is categorized as Emerging Markets Equities, while IBIC is Inflation-Protected Bonds. VWO tracks FTSE Emerging 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: 0.08% for VWO and 0.10% for IBIC.
IBIC currently has the higher Sharpe Ratio (4.99 vs 1.60), 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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