TIP vs. VTIPX
TIP (iShares TIPS Bond ETF) and VTIPX (Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares) are both Inflation-Protected Bonds funds. Over the past 10 years, TIP returned 2.57%/yr vs 3.05%/yr for VTIPX. A 0.79 correlation means they provide meaningful diversification when combined. TIP charges 0.18%/yr vs 0.14%/yr for VTIPX.
Performance
TIP vs. VTIPX - Performance Comparison
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Returns By Period
In the year-to-date period, TIP achieves a 1.54% return, which is significantly lower than VTIPX's 1.99% return. Over the past 10 years, TIP has underperformed VTIPX with an annualized return of 2.57%, while VTIPX has yielded a comparatively higher 3.05% annualized return.
TIP
- 1D
- -0.18%
- 1M
- -0.09%
- YTD
- 1.54%
- 6M
- 1.06%
- 1Y
- 4.96%
- 3Y*
- 3.88%
- 5Y*
- 0.97%
- 10Y*
- 2.57%
VTIPX
- 1D
- 0.00%
- 1M
- -0.00%
- YTD
- 1.99%
- 6M
- 1.96%
- 1Y
- 4.60%
- 3Y*
- 5.15%
- 5Y*
- 3.29%
- 10Y*
- 3.05%
TIP vs. VTIPX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
TIP iShares TIPS Bond ETF | 1.54% | 6.77% | 1.65% | 3.80% | -12.26% | 5.68% | 10.84% | 8.35% | -1.42% | 2.92% |
VTIPX Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares | 1.99% | 5.96% | 4.65% | 4.51% | -2.93% | 5.21% | 4.85% | 4.74% | 0.49% | 0.72% |
Correlation
The correlation between TIP and VTIPX 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 | 0.82 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.82 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.80 |
Correlation (All Time) Calculated using the full available price history since Jan 3, 2013 | 0.79 |
The correlation between TIP and VTIPX has been stable across timeframes, ranging from 0.77 to 0.82 - a consistent structural relationship.
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Return for Risk
TIP vs. VTIPX — Risk / Return Rank
TIP
VTIPX
TIP vs. VTIPX - 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 Index Fund Investor Shares (VTIPX). 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.
| TIP | VTIPX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.51 | ||
| Sortino ratioReturn per unit of downside risk | -2.74 | ||
| Omega ratioGain probability vs. loss probability | 1.26 | 1.62 | -0.36 |
| Calmar ratioReturn relative to maximum drawdown | 2.52 | 6.27 | -3.74 |
| Martin ratioReturn relative to average drawdown | 7.57 | 24.45 | -16.88 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| TIP | VTIPX | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.46 | 2.97 | -1.51 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.16 | 1.24 | -1.09 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.45 | 1.38 | -0.93 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.57 | 1.03 | -0.46 |
Drawdowns
TIP vs. VTIPX - Drawdown Comparison
The maximum TIP drawdown since its inception was -14.57%, which is greater than VTIPX's maximum drawdown of -5.36%. Use the drawdown chart below to compare losses from any high point for TIP and VTIPX.
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Drawdown Indicators
| TIP | VTIPX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -14.57% | -5.36% | -9.21% |
Max Drawdown (1Y)Largest decline over 1 year | -1.98% | -0.72% | -1.26% |
Max Drawdown (3Y)Largest decline over 3 years | -4.54% | -0.95% | -3.59% |
Max Drawdown (5Y)Largest decline over 5 years | -14.51% | -5.36% | -9.15% |
Max Drawdown (10Y)Largest decline over 10 years | -14.51% | -5.36% | -9.15% |
Current DrawdownCurrent decline from peak | -0.32% | -0.04% | -0.28% |
Average DrawdownAverage peak-to-trough decline | -3.43% | -1.11% | -2.32% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.66% | 0.18% | +0.48% |
Volatility
TIP vs. VTIPX - Volatility Comparison
iShares TIPS Bond ETF (TIP) has a higher volatility of 0.89% compared to Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares (VTIPX) at 0.53%. This indicates that TIP's price experiences larger fluctuations and is considered to be riskier than VTIPX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TIP | VTIPX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.89% | 0.53% | +0.36% |
Volatility (6M)Calculated over the trailing 6-month period | 2.29% | 1.09% | +1.20% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.41% | 1.51% | +1.90% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.21% | 2.66% | +3.55% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.74% | 2.22% | +3.52% |
TIP vs. VTIPX - Expense Ratio Comparison
TIP has a 0.18% expense ratio, which is higher than VTIPX's 0.14% 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. VTIPX - Dividend Comparison
TIP's dividend yield for the trailing twelve months is around 3.76%, more than VTIPX's 3.48% 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% |
VTIPX Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares | 3.48% | 3.70% | 2.60% | 2.76% | 6.74% | 4.59% | 1.11% | 1.88% | 2.37% | 1.50% | 0.55% | 0.00% |
Frequently Asked Questions
TIP and VTIPX 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 (0.89%) compared to VTIPX (0.53%). In terms of maximum drawdown, TIP dropped -14.57% vs VTIPX's -5.36%.
VTIPX currently has the higher Sharpe Ratio (2.97 vs 1.46), 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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