TIP vs. VTIVX

Last updated Jun 9, 2026

TIP (iShares TIPS Bond ETF) and VTIVX (Vanguard Target Retirement 2045 Fund) are both funds - TIP is a Inflation-Protected Bonds fund tracking the ICE U.S. Treasury Inflation Linked Bond Index, while VTIVX is a Target Retirement Date fund managed by Vanguard. Over the past 10 years, TIP returned 2.45%/yr vs 10.91%/yr for VTIVX. At a correlation of -0.05, they often move in opposite directions. TIP charges 0.18%/yr vs 0.08%/yr for VTIVX.

Performance

TIP vs. VTIVX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares TIPS Bond ETF (TIP) and Vanguard Target Retirement 2045 Fund (VTIVX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TIP achieves a 0.95% return, which is significantly lower than VTIVX's 7.80% return. Over the past 10 years, TIP has underperformed VTIVX with an annualized return of 2.45%, while VTIVX has yielded a comparatively higher 10.91% annualized return.

TIP

• 1D: -0.11%
• 1M: -0.90%
• YTD: 0.95%
• 6M: 0.97%
• 1Y: 4.81%
• 3Y*: 3.70%
• 5Y*: 0.88%
• 10Y*: 2.45%

VTIVX

• 1D: -2.58%
• 1M: -0.77%
• YTD: 7.80%
• 6M: 8.61%
• 1Y: 21.54%
• 3Y*: 17.21%
• 5Y*: 8.80%
• 10Y*: 10.91%

*Multi-year figures are annualized to reflect compound growth (CAGR)

TIP vs. VTIVX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TIP iShares TIPS Bond ETF	0.95%	6.77%	1.65%	3.80%	-12.26%	5.68%	10.84%	8.35%	-1.42%	2.92%
VTIVX Vanguard Target Retirement 2045 Fund	7.80%	20.01%	13.68%	19.72%	-17.38%	16.16%	16.31%	24.94%	-7.89%	19.16%

Correlation

The correlation between TIP and VTIVX is 0.30, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.30
Correlation (3Y) Calculated over the trailing 3-year period	0.29
Correlation (5Y) Calculated over the trailing 5-year period	0.24
Correlation (10Y) Calculated over the trailing 10-year period	0.12
Correlation (All Time) Calculated using the full available price history since Dec 5, 2003	-0.05

The correlation between TIP and VTIVX shifts across timeframes, from -0.05 (all time) to 0.30 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

TIP vs. VTIVX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

TIP

TIP Risk / Return Rank: 48
TIP Sharpe Ratio Rank: 45
TIP Sortino Ratio Rank: 50
TIP Omega Ratio Rank: 44
TIP Calmar Ratio Rank: 54
TIP Martin Ratio Rank: 48

VTIVX

VTIVX Risk / Return Rank: 53
VTIVX Sharpe Ratio Rank: 52
VTIVX Sortino Ratio Rank: 48
VTIVX Omega Ratio Rank: 51
VTIVX Calmar Ratio Rank: 53
VTIVX Martin Ratio Rank: 62

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

TIP vs. VTIVX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares TIPS Bond ETF (TIP) and Vanguard Target Retirement 2045 Fund (VTIVX). 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	VTIVX	Difference
Sharpe ratio: Return per unit of total volatility	1.43	2.06	-0.63
Sortino ratio: Return per unit of downside risk	2.21	2.83	-0.62
Omega ratio: Gain probability vs. loss probability	1.26	1.38	-0.12
Calmar ratio: Return relative to maximum drawdown	2.45	2.69	-0.24
Martin ratio: Return relative to average drawdown	7.37	11.85	-4.49
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TIP vs. VTIVX - Sharpe Ratio Comparison

The current TIP Sharpe Ratio is 1.43, which is lower than the VTIVX Sharpe Ratio of 2.06. The chart below compares the historical Sharpe Ratios of TIP and VTIVX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	TIP	VTIVX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.43	2.06	-0.63
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.14	0.65	-0.51
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.43	0.74	-0.31
Sharpe Ratio (All Time) Calculated using the full available price history	0.57	0.54	+0.03

Drawdowns

TIP vs. VTIVX - Drawdown Comparison

The maximum TIP drawdown since its inception was -14.57%, smaller than the maximum VTIVX drawdown of -51.69%. Use the drawdown chart below to compare losses from any high point for TIP and VTIVX.

Drawdown Indicators

	TIP	VTIVX	Difference
Max Drawdown Largest peak-to-trough decline	-14.57%	-51.69%	+37.12%
Max Drawdown (1Y) Largest decline over 1 year	-1.98%	-8.30%	+6.32%
Max Drawdown (3Y) Largest decline over 3 years	-4.54%	-13.40%	+8.86%
Max Drawdown (5Y) Largest decline over 5 years	-14.51%	-25.10%	+10.59%
Max Drawdown (10Y) Largest decline over 10 years	-14.51%	-31.42%	+16.91%
Current Drawdown Current decline from peak	-0.90%	-2.95%	+2.05%
Average Drawdown Average peak-to-trough decline	-3.43%	-6.33%	+2.90%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.65%	1.88%	-1.23%

Volatility

TIP vs. VTIVX - Volatility Comparison

The current volatility for iShares TIPS Bond ETF (TIP) is 1.01%, while Vanguard Target Retirement 2045 Fund (VTIVX) has a volatility of 3.88%. This indicates that TIP experiences smaller price fluctuations and is considered to be less risky than VTIVX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TIP	VTIVX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.01%	3.88%	-2.87%
Volatility (6M) Calculated over the trailing 6-month period	2.33%	8.81%	-6.48%
Volatility (1Y) Calculated over the trailing 1-year period	3.38%	10.85%	-7.47%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.21%	13.54%	-7.33%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.74%	14.81%	-9.07%

TIP vs. VTIVX - Expense Ratio Comparison

TIP has a 0.18% expense ratio, which is higher than VTIVX's 0.08% 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. VTIVX - Dividend Comparison

TIP's dividend yield for the trailing twelve months is around 3.78%, more than VTIVX's 2.31% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TIP iShares TIPS Bond ETF	3.78%	3.46%	2.52%	2.73%	6.96%	4.28%	1.17%	1.75%	2.71%	2.07%	1.48%	0.34%
VTIVX Vanguard Target Retirement 2045 Fund	2.31%	2.50%	2.36%	2.27%	2.75%	15.40%	1.90%	2.23%	2.52%	0.04%	2.47%	3.29%

Frequently Asked Questions

Can I hold both TIP and VTIVX in my portfolio?

TIP and VTIVX have a correlation of 0.30, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TIP or VTIVX?

VTIVX has higher volatility (3.88%) compared to TIP (1.01%). In terms of maximum drawdown, TIP dropped -14.57% vs VTIVX's -51.69%.

Which has better risk-adjusted returns?

VTIVX currently has the higher Sharpe Ratio (2.06 vs 1.43), 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.