TIP vs. VCLT
TIP (iShares TIPS Bond ETF) and VCLT (Vanguard Long-Term Corporate Bond ETF) are both exchange-traded funds - TIP is a Inflation-Protected Bonds fund tracking the ICE U.S. Treasury Inflation Linked Bond Index, while VCLT is a Corporate Bonds fund tracking the Bloomberg U.S. 10+ Year Corporate Bond Index. Both are passively managed. Over the past 10 years, TIP returned 2.53%/yr vs 2.27%/yr for VCLT. A 0.69 correlation means they provide meaningful diversification when combined. TIP charges 0.18%/yr vs 0.03%/yr for VCLT.
Performance
TIP vs. VCLT - Performance Comparison
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Returns By Period
The year-to-date returns for both investments are quite close, with TIP having a 1.40% return and VCLT slightly higher at 1.41%. Over the past 10 years, TIP has outperformed VCLT with an annualized return of 2.53%, while VCLT has yielded a comparatively lower 2.27% annualized return.
TIP
- 1D
- 0.01%
- 1M
- 0.25%
- YTD
- 1.40%
- 6M
- 1.42%
- 1Y
- 4.76%
- 3Y*
- 4.00%
- 5Y*
- 0.91%
- 10Y*
- 2.53%
VCLT
- 1D
- -0.09%
- 1M
- 2.37%
- YTD
- 1.41%
- 6M
- 1.82%
- 1Y
- 6.87%
- 3Y*
- 4.64%
- 5Y*
- -2.06%
- 10Y*
- 2.27%
TIP vs. VCLT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
TIP iShares TIPS Bond ETF | 1.40% | 6.77% | 1.65% | 3.80% | -12.26% | 5.68% | 10.84% | 8.35% | -1.42% | 2.92% |
VCLT Vanguard Long-Term Corporate Bond ETF | 1.41% | 7.18% | -1.90% | 11.17% | -25.50% | -1.73% | 13.27% | 23.89% | -7.04% | 11.70% |
Correlation
The correlation between TIP and VCLT is 0.77, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.77 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.83 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.74 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.71 |
Correlation (All Time) Calculated using the full available price history since Nov 23, 2009 | 0.69 |
The correlation between TIP and VCLT shifts across timeframes, from 0.69 (all time) to 0.83 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
TIP vs. VCLT — Risk / Return Rank
TIP
VCLT
TIP vs. VCLT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares TIPS Bond ETF (TIP) and Vanguard Long-Term Corporate Bond ETF (VCLT). 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.
| TIP | VCLT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.62 | ||
| Sortino ratioReturn per unit of downside risk | +1.00 | ||
| Omega ratioGain probability vs. loss probability | 1.24 | 1.13 | +0.11 |
| Calmar ratioReturn relative to maximum drawdown | 2.34 | 1.13 | +1.21 |
| Martin ratioReturn relative to average drawdown | 7.00 | 2.75 | +4.25 |
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Drawdowns
TIP vs. VCLT - Drawdown Comparison
The maximum TIP drawdown since its inception was -14.57%, smaller than the maximum VCLT drawdown of -34.31%. Use the drawdown chart below to compare losses from any high point for TIP and VCLT.
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Drawdown Indicators
| TIP | VCLT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -14.57% | -34.31% | +19.74% |
Max Drawdown (1Y)Largest decline over 1 year | -1.98% | -5.25% | +3.27% |
Max Drawdown (3Y)Largest decline over 3 years | -4.54% | -13.03% | +8.49% |
Max Drawdown (5Y)Largest decline over 5 years | -14.51% | -34.31% | +19.80% |
Max Drawdown (10Y)Largest decline over 10 years | -14.51% | -34.31% | +19.80% |
Current DrawdownCurrent decline from peak | -0.46% | -14.00% | +13.54% |
Average DrawdownAverage peak-to-trough decline | -3.43% | -8.17% | +4.74% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.66% | 2.16% | -1.50% |
Volatility
TIP vs. VCLT - Volatility Comparison
The current volatility for iShares TIPS Bond ETF (TIP) is 1.03%, while Vanguard Long-Term Corporate Bond ETF (VCLT) has a volatility of 2.48%. This indicates that TIP experiences smaller price fluctuations and is considered to be less risky than VCLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TIP | VCLT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.03% | 2.48% | -1.45% |
Volatility (6M)Calculated over the trailing 6-month period | 2.32% | 5.91% | -3.59% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.39% | 7.95% | -4.56% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.21% | 12.77% | -6.56% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.74% | 12.85% | -7.11% |
TIP vs. VCLT - Expense Ratio Comparison
TIP has a 0.18% expense ratio, which is higher than VCLT's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
TIP vs. VCLT - Dividend Comparison
TIP's dividend yield for the trailing twelve months is around 3.76%, less than VCLT's 5.52% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TIP iShares TIPS Bond ETF | 3.76% | 3.46% | 2.52% | 2.73% | 6.96% | 4.28% | 1.17% | 1.75% | 2.71% | 2.07% | 1.48% | 0.34% |
VCLT Vanguard Long-Term Corporate Bond ETF | 5.52% | 5.51% | 5.19% | 4.67% | 4.44% | 3.07% | 3.16% | 3.81% | 4.55% | 4.01% | 4.33% | 4.68% |
Frequently Asked Questions
TIP and VCLT have a correlation of 0.77, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VCLT has higher volatility (2.48%) compared to TIP (1.03%). In terms of maximum drawdown, TIP dropped -14.57% vs VCLT's -34.31%.
On 10-year performance, TIP leads with 2.53% vs 2.27% for VCLT. On fees, VCLT is cheaper at 0.03% per year. On volatility, TIP has been the lower-risk option at 1.03%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, TIP has performed better with a 2.53% return vs 2.27%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VCLT is cheaper with a 0.03% expense ratio, compared with 0.18% for TIP.
VCLT has the higher dividend yield at 5.52%, compared with 3.76% for TIP.
TIP is categorized as Inflation-Protected Bonds, while VCLT is Corporate Bonds. TIP tracks ICE U.S. Treasury Inflation Linked Bond Index, while VCLT tracks Bloomberg U.S. 10+ Year Corporate Bond Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.18% for TIP and 0.03% for VCLT.
TIP currently has the higher Sharpe Ratio (1.37 vs 0.75), 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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