TIP vs. VTIP
TIP (iShares TIPS Bond ETF) and VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) are both Inflation-Protected Bonds funds - TIP tracks the ICE U.S. Treasury Inflation Linked Bond Index while VTIP tracks the Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index. Both are passively managed. Over the past 10 years, TIP returned 2.43%/yr vs 3.03%/yr for VTIP. A 0.76 correlation means they provide meaningful diversification when combined. TIP charges 0.18%/yr vs 0.03%/yr for VTIP.
Performance
TIP vs. VTIP - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, TIP achieves a 0.78% return, which is significantly lower than VTIP's 1.34% return. Over the past 10 years, TIP has underperformed VTIP with an annualized return of 2.43%, while VTIP has yielded a comparatively higher 3.03% annualized return.
TIP
- 1D
- -0.41%
- 1M
- -0.16%
- YTD
- 0.78%
- 6M
- 0.90%
- 1Y
- 3.46%
- 3Y*
- 3.53%
- 5Y*
- 0.79%
- 10Y*
- 2.43%
VTIP
- 1D
- -0.18%
- 1M
- -0.24%
- YTD
- 1.34%
- 6M
- 1.46%
- 1Y
- 3.64%
- 3Y*
- 5.00%
- 5Y*
- 3.26%
- 10Y*
- 3.03%
TIP vs. VTIP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
TIP iShares TIPS Bond ETF | 0.78% | 6.77% | 1.65% | 3.80% | -12.26% | 5.68% | 10.84% | 8.35% | -1.42% | 2.92% |
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 1.34% | 6.07% | 4.74% | 4.62% | -2.94% | 5.36% | 4.95% | 4.86% | 0.56% | 0.82% |
Correlation
The correlation between TIP and VTIP 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 | 0.84 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.84 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.79 |
Correlation (All Time) Calculated using the full available price history since Oct 16, 2012 | 0.76 |
The correlation between TIP and VTIP has been stable across timeframes, ranging from 0.76 to 0.84 - a consistent structural relationship.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
TIP vs. VTIP — Risk / Return Rank
TIP
VTIP
TIP vs. VTIP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares TIPS Bond ETF (TIP) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP). 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 | VTIP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.31 | ||
| Sortino ratioReturn per unit of downside risk | -2.12 | ||
| Omega ratioGain probability vs. loss probability | 1.18 | 1.47 | -0.30 |
| Calmar ratioReturn relative to maximum drawdown | 1.76 | 5.12 | -3.36 |
| Martin ratioReturn relative to average drawdown | 5.20 | 18.66 | -13.46 |
Loading charts...
Drawdowns
TIP vs. VTIP - Drawdown Comparison
The maximum TIP drawdown since its inception was -14.57%, which is greater than VTIP's maximum drawdown of -6.27%. Use the drawdown chart below to compare losses from any high point for TIP and VTIP.
Loading charts...
Drawdown Indicators
| TIP | VTIP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -14.57% | -6.27% | -8.30% |
Max Drawdown (1Y)Largest decline over 1 year | -1.98% | -0.71% | -1.27% |
Max Drawdown (3Y)Largest decline over 3 years | -4.54% | -0.98% | -3.56% |
Max Drawdown (5Y)Largest decline over 5 years | -14.51% | -5.50% | -9.01% |
Max Drawdown (10Y)Largest decline over 10 years | -14.51% | -6.27% | -8.24% |
Current DrawdownCurrent decline from peak | -1.07% | -0.71% | -0.36% |
Average DrawdownAverage peak-to-trough decline | -3.43% | -1.04% | -2.39% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.67% | 0.20% | +0.47% |
Volatility
TIP vs. VTIP - Volatility Comparison
iShares TIPS Bond ETF (TIP) has a higher volatility of 1.22% compared to Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) at 0.65%. This indicates that TIP's price experiences larger fluctuations and is considered to be riskier than VTIP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| TIP | VTIP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.22% | 0.65% | +0.57% |
Volatility (6M)Calculated over the trailing 6-month period | 2.47% | 1.17% | +1.30% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.45% | 1.58% | +1.87% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.20% | 2.77% | +3.43% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.74% | 2.74% | +3.00% |
TIP vs. VTIP - Expense Ratio Comparison
TIP has a 0.18% expense ratio, which is higher than VTIP'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. VTIP - Dividend Comparison
TIP's dividend yield for the trailing twelve months is around 3.79%, more than VTIP's 3.61% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TIP iShares TIPS Bond ETF | 3.79% | 3.46% | 2.52% | 2.73% | 6.96% | 4.28% | 1.17% | 1.75% | 2.71% | 2.07% | 1.48% | 0.34% |
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 3.61% | 3.81% | 2.70% | 2.86% | 6.84% | 4.68% | 1.20% | 1.95% | 2.45% | 1.52% | 0.76% | 0.00% |
Frequently Asked Questions
TIP and VTIP 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.
TIP has higher volatility (1.22%) compared to VTIP (0.65%). In terms of maximum drawdown, TIP dropped -14.57% vs VTIP's -6.27%.
On 10-year performance, VTIP leads with 3.03% vs 2.43% for TIP. On fees, VTIP is cheaper at 0.03% per year. On volatility, VTIP has been the lower-risk option at 0.65%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VTIP has performed better with a 3.03% return vs 2.43%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VTIP is cheaper with a 0.03% expense ratio, compared with 0.18% for TIP.
TIP has the higher dividend yield at 3.79%, compared with 3.61% for VTIP.
TIP tracks ICE U.S. Treasury Inflation Linked Bond Index, while VTIP tracks Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.18% for TIP and 0.03% for VTIP.
VTIP currently has the higher Sharpe Ratio (2.32 vs 1.01), 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.
Find the right allocation for TIP and VTIP
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer