TIP vs. VTP
TIP (iShares TIPS Bond ETF) and VTP (Vanguard Total Inflation-Protected Securities ETF) are both Inflation-Protected Bonds funds - TIP tracks the ICE U.S. Treasury Inflation Linked Bond Index while VTP tracks the ICE U.S. Treasury Inflation Linked Bond Index 0-5. Both are passively managed. With a 0.97 correlation, they move nearly in lockstep. TIP charges 0.18%/yr vs 0.05%/yr for VTP.
Performance
TIP vs. VTP - Performance Comparison
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Returns By Period
The year-to-date returns for both investments are quite close, with TIP having a 1.54% return and VTP slightly higher at 1.55%.
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%
VTP
- 1D
- -0.16%
- 1M
- -0.08%
- YTD
- 1.55%
- 6M
- 1.09%
- 1Y
- —
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
TIP vs. VTP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | |
|---|---|---|
TIP iShares TIPS Bond ETF | 1.54% | 2.08% |
VTP Vanguard Total Inflation-Protected Securities ETF | 1.55% | 2.27% |
Correlation
The correlation between TIP and VTP is 0.97 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.
| Correlation | |
|---|---|
Correlation (All Time) Calculated using the full available price history since Jul 10, 2025 | 0.97 |
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Return for Risk
TIP vs. VTP — Risk / Return Rank
TIP
VTP
TIP vs. VTP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares TIPS Bond ETF (TIP) and Vanguard Total Inflation-Protected Securities ETF (VTP). 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 | VTP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | — | — | |
| Sortino ratioReturn per unit of downside risk | — | — | |
| Omega ratioGain probability vs. loss probability | 1.26 | — | — |
| Calmar ratioReturn relative to maximum drawdown | 2.52 | — | — |
| Martin ratioReturn relative to average drawdown | 7.57 | — | — |
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 | VTP | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.46 | — | — |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.16 | — | — |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.45 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.57 | 1.31 | -0.74 |
Drawdowns
TIP vs. VTP - Drawdown Comparison
The maximum TIP drawdown since its inception was -14.57%, which is greater than VTP's maximum drawdown of -1.92%. Use the drawdown chart below to compare losses from any high point for TIP and VTP.
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Drawdown Indicators
| TIP | VTP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -14.57% | -1.92% | -12.65% |
Max Drawdown (1Y)Largest decline over 1 year | -1.98% | — | — |
Max Drawdown (3Y)Largest decline over 3 years | -4.54% | — | — |
Max Drawdown (5Y)Largest decline over 5 years | -14.51% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -14.51% | — | — |
Current DrawdownCurrent decline from peak | -0.32% | -0.30% | -0.02% |
Average DrawdownAverage peak-to-trough decline | -3.43% | -0.52% | -2.91% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.66% | — | — |
Volatility
TIP vs. VTP - Volatility Comparison
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Volatility by Period
| TIP | VTP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.89% | — | — |
Volatility (6M)Calculated over the trailing 6-month period | 2.29% | — | — |
Volatility (1Y)Calculated over the trailing 1-year period | 3.41% | 3.26% | +0.15% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.21% | 3.26% | +2.95% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.74% | 3.26% | +2.48% |
TIP vs. VTP - Expense Ratio Comparison
TIP has a 0.18% expense ratio, which is higher than VTP's 0.05% 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. VTP - Dividend Comparison
TIP's dividend yield for the trailing twelve months is around 3.76%, more than VTP's 1.61% 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% |
VTP Vanguard Total Inflation-Protected Securities ETF | 1.61% | 1.56% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
With a correlation of 0.97, TIP and VTP move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
On fees, VTP is cheaper at 0.05% per year. The better choice depends on whether you care most about return, fees, risk, or income.
VTP is cheaper with a 0.05% expense ratio, compared with 0.18% for TIP.
TIP has the higher dividend yield at 3.76%, compared with 1.61% for VTP.
TIP tracks ICE U.S. Treasury Inflation Linked Bond Index, while VTP tracks ICE U.S. Treasury Inflation Linked Bond Index 0-5. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.18% for TIP and 0.05% for VTP.
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