TIP vs. VTP
TIP (iShares TIPS Bond ETF) and VTP (Vanguard Total Inflation-Protected Securities ETF) are both Inflation-Protected Bonds funds tracking the ICE U.S. Treasury Inflation Linked Bond Index, from iShares and Vanguard respectively. Both are passively managed. Over the past year, TIP returned 3.01% vs 3.18% for VTP. 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 0.85% return and VTP slightly higher at 0.86%.
TIP
- 1D
- -0.09%
- 1M
- -0.67%
- 6M
- 0.56%
- YTD
- 0.85%
- 1Y
- 3.01%
- 3Y*
- 3.58%
- 5Y*
- 0.47%
- 10Y*
- 2.35%
VTP
- 1D
- -0.08%
- 1M
- -0.62%
- 6M
- 0.58%
- YTD
- 0.86%
- 1Y
- 3.18%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
TIP vs. VTP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | |
|---|---|---|
TIP iShares TIPS Bond ETF | 0.85% | 2.46% |
VTP Vanguard Total Inflation-Protected Securities ETF | 0.86% | 2.46% |
Correlation
The correlation between TIP and VTP is 0.96 - 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 (1Y) Calculated over the trailing 1-year period | 0.96 |
Correlation (All Time) Calculated using the full available price history since Jul 9, 2025 | 0.97 |
The correlation between TIP and VTP has been stable across timeframes, ranging from 0.96 to 0.97 - a consistent structural relationship.
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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.
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 | VTP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.08 | ||
| Sortino ratioReturn per unit of downside risk | -0.10 | ||
| Omega ratioGain probability vs. loss probability | 1.15 | 1.17 | -0.02 |
| Calmar ratioReturn relative to maximum drawdown | 1.53 | 1.66 | -0.13 |
| Martin ratioReturn relative to average drawdown | 4.33 | 4.69 | -0.36 |
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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% | -1.92% | -0.06% |
Max Drawdown (3Y)Largest decline over 3 years | -4.50% | — | — |
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 | -1.00% | -0.97% | -0.03% |
Average DrawdownAverage peak-to-trough decline | -3.42% | -0.53% | -2.89% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.70% | 0.68% | +0.02% |
Volatility
TIP vs. VTP - Volatility Comparison
iShares TIPS Bond ETF (TIP) and Vanguard Total Inflation-Protected Securities ETF (VTP) have volatilities of 1.20% and 1.19%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TIP | VTP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.20% | 1.19% | +0.01% |
Volatility (6M)Calculated over the trailing 6-month period | 2.54% | 2.47% | +0.07% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.47% | 3.35% | +0.12% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.20% | 3.33% | +2.87% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.73% | 3.33% | +2.40% |
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 4.45%, more than VTP's 2.98% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TIP iShares TIPS Bond ETF | 4.45% | 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 | 2.98% | 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 0.96, 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.
TIP has higher volatility (1.20%) compared to VTP (1.19%). In terms of maximum drawdown, TIP dropped -14.57% vs VTP's -1.92%.
On 1-year performance, VTP leads with 3.18% vs 3.01% for TIP. On fees, VTP is cheaper at 0.05% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, VTP has performed better with a 3.18% return vs 3.01%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VTP is cheaper with a 0.05% expense ratio, compared with 0.18% for TIP.
TIP has the higher dividend yield at 4.45%, compared with 2.98% for VTP.
Both ETFs track ICE U.S. Treasury Inflation Linked Bond Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.18% for TIP and 0.05% for VTP.
VTP currently has the higher Sharpe Ratio (0.96 vs 0.87), 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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