TIPZ vs. VTIP
Compare and contrast key facts about PIMCO Broad US TIPS Index ETF (TIPZ) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP).
TIPZ and VTIP are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. TIPZ is a passively managed fund by PIMCO that tracks the performance of the ICE BofA US Inflation-Linked Treasury. It was launched on Sep 3, 2009. VTIP is a passively managed fund by Vanguard that tracks the performance of the Barclays Capital U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Years Index (Series-L). It was launched on Oct 12, 2012. Both TIPZ and VTIP are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: TIPZ or VTIP.
Key characteristics
| TIPZ | VTIP | |
|---|---|---|
| YTD Return | -0.69% | 1.17% |
| 1Y Return | -0.38% | 3.45% |
| 3Y Return (Ann) | -1.56% | 2.09% |
| 5Y Return (Ann) | 2.25% | 3.29% |
| 10Y Return (Ann) | 1.88% | 2.03% |
| Sharpe Ratio | -0.07 | 1.39 |
| Daily Std Dev | 5.91% | 2.51% |
| Max Drawdown | -15.41% | -6.27% |
| Current Drawdown | -10.38% | 0.00% |
Correlation
The correlation between TIPZ and VTIP is 0.71, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
TIPZ vs. VTIP - Performance Comparison
In the year-to-date period, TIPZ achieves a -0.69% return, which is significantly lower than VTIP's 1.17% return. Over the past 10 years, TIPZ has underperformed VTIP with an annualized return of 1.88%, while VTIP has yielded a comparatively higher 2.03% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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TIPZ vs. VTIP - Expense Ratio Comparison
TIPZ has a 0.20% expense ratio, which is higher than VTIP's 0.04% 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%.
Risk-Adjusted Performance
TIPZ vs. VTIP - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for PIMCO Broad US TIPS Index ETF (TIPZ) 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.
Dividends
TIPZ vs. VTIP - Dividend Comparison
TIPZ's dividend yield for the trailing twelve months is around 5.34%, more than VTIP's 3.31% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TIPZ PIMCO Broad US TIPS Index ETF | 5.34% | 5.21% | 7.14% | 4.83% | 1.47% | 1.65% | 2.41% | 1.70% | 1.06% | 0.56% | 1.09% | 0.73% |
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 3.31% | 3.36% | 6.84% | 4.68% | 1.20% | 1.95% | 2.45% | 1.52% | 0.76% | 0.00% | 0.82% | 0.05% |
Drawdowns
TIPZ vs. VTIP - Drawdown Comparison
The maximum TIPZ drawdown since its inception was -15.41%, which is greater than VTIP's maximum drawdown of -6.27%. Use the drawdown chart below to compare losses from any high point for TIPZ and VTIP. For additional features, visit the drawdowns tool.
Volatility
TIPZ vs. VTIP - Volatility Comparison
PIMCO Broad US TIPS Index ETF (TIPZ) has a higher volatility of 1.57% compared to Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) at 0.58%. This indicates that TIPZ'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.