PortfoliosLab logoPortfoliosLab logo

Documentation

Upgrade your plan
VB vs. TIP
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VB vs. TIP

Last updated Jun 3, 2026

VB (Vanguard Small-Cap ETF) and TIP (iShares TIPS Bond ETF) are both exchange-traded funds - VB is a Small Cap Blend Equities fund tracking the CRSP US Small Cap Index, while TIP is a Inflation-Protected Bonds fund tracking the Barclays Capital U.S. Treasury Inflation Protected Securities (TIPS) Index (Series-L). Both are passively managed. Over the past 10 years, VB returned 11.38%/yr vs 2.59%/yr for TIP. At a correlation of -0.08, they often move in opposite directions. VB charges 0.05%/yr vs 0.19%/yr for TIP.

Performance

VB vs. TIP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Small-Cap ETF (VB) and iShares TIPS Bond ETF (TIP). The values are adjusted to include any dividend payments, if applicable.

Loading charts...

Returns By Period

In the year-to-date period, VB achieves a 14.91% return, which is significantly higher than TIP's 1.73% return. Over the past 10 years, VB has outperformed TIP with an annualized return of 11.38%, while TIP has yielded a comparatively lower 2.59% annualized return.

VB

1D
0.75%
1M
3.68%
YTD
14.91%
6M
16.03%
1Y
31.39%
3Y*
17.31%
5Y*
7.35%
10Y*
11.38%

TIP

1D
-0.01%
1M
-0.09%
YTD
1.73%
6M
1.47%
1Y
5.06%
3Y*
3.94%
5Y*
1.11%
10Y*
2.59%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VB vs. TIP - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VB
Vanguard Small-Cap ETF		14.91%8.87%14.17%18.22%-17.51%17.57%19.19%27.34%-9.34%16.26%
TIP
iShares TIPS Bond ETF		1.73%6.77%1.65%3.80%-12.26%5.68%10.84%8.35%-1.42%2.92%

Correlation

The correlation between VB and TIP is 0.22, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.22

Correlation (3Y)
Calculated over the trailing 3-year period

0.23

Correlation (5Y)
Calculated over the trailing 5-year period

0.18

Correlation (10Y)
Calculated over the trailing 10-year period

0.06

Correlation (All Time)
Calculated using the full available price history since Feb 2, 2004

-0.08

The correlation between VB and TIP shifts across timeframes, from -0.08 (all time) to 0.23 (3 years), reflecting how their relationship changes across market environments.

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Vanguard Small-Cap ETF

iShares TIPS Bond ETF

Often compared with VB:
VB vs. VBRVB vs. IJRVB vs. VBKVB vs. VOOVB vs. SCHAVB vs. VTWOVB vs. FSSNX
Often compared with TIP:
TIP vs. SCHPTIP vs. VTIPTIP vs. SGOVTIP vs. STIPTIP vs. FIPDXTIP vs. BNDTIP vs. IEF

Return for Risk

VB vs. TIP — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VB
VB Risk / Return Rank: 6161
Overall Rank
VB Sharpe Ratio Rank: 5656
Sharpe Ratio Rank
VB Sortino Ratio Rank: 5757
Sortino Ratio Rank
VB Omega Ratio Rank: 5454
Omega Ratio Rank
VB Calmar Ratio Rank: 6969
Calmar Ratio Rank
VB Martin Ratio Rank: 6868
Martin Ratio Rank
TIP
TIP Risk / Return Rank: 4444
Overall Rank
TIP Sharpe Ratio Rank: 4242
Sharpe Ratio Rank
TIP Sortino Ratio Rank: 4646
Sortino Ratio Rank
TIP Omega Ratio Rank: 4040
Omega Ratio Rank
TIP Calmar Ratio Rank: 4747
Calmar Ratio Rank
TIP Martin Ratio Rank: 4444
Martin Ratio Rank
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.

VB vs. TIP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Small-Cap ETF (VB) and iShares TIPS Bond ETF (TIP). 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.

VBTIPDifference

Sharpe ratio

Return per unit of total volatility

1.94

1.49

+0.45

Sortino ratio

Return per unit of downside risk

2.75

2.29

+0.46

Omega ratio

Gain probability vs. loss probability

1.34

1.27

+0.07

Calmar ratio

Return relative to maximum drawdown

3.48

2.38

+1.09

Martin ratio

Return relative to average drawdown

12.82

7.17

+5.66

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VB vs. TIP - Sharpe Ratio Comparison

The current VB Sharpe Ratio is 1.94, which is higher than the TIP Sharpe Ratio of 1.49. The chart below compares the historical Sharpe Ratios of VB and TIP, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Loading charts...

Sharpe Ratios by Period

VBTIPDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.94

1.49

+0.45

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.36

0.18

+0.18

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.53

0.45

+0.08

Sharpe Ratio (All Time)

Calculated using the full available price history

0.44

0.57

-0.13

Drawdowns

VB vs. TIP - Drawdown Comparison

The maximum VB drawdown since its inception was -59.56%, which is greater than TIP's maximum drawdown of -14.57%. Use the drawdown chart below to compare losses from any high point for VB and TIP.

Loading charts...

Drawdown Indicators

VBTIPDifference

Max Drawdown

Largest peak-to-trough decline

-59.56%

-14.57%

-44.99%

Max Drawdown (1Y)

Largest decline over 1 year

-8.98%

-1.98%

-7.00%

Max Drawdown (3Y)

Largest decline over 3 years

-25.36%

-4.54%

-20.82%

Max Drawdown (5Y)

Largest decline over 5 years

-28.15%

-14.51%

-13.64%

Max Drawdown (10Y)

Largest decline over 10 years

-42.05%

-14.51%

-27.54%

Current Drawdown

Current decline from peak

0.00%

-0.14%

+0.14%

Average Drawdown

Average peak-to-trough decline

-8.44%

-3.43%

-5.01%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.43%

0.66%

+1.77%

Volatility

VB vs. TIP - Volatility Comparison

Vanguard Small-Cap ETF (VB) has a higher volatility of 4.40% compared to iShares TIPS Bond ETF (TIP) at 0.89%. This indicates that VB's price experiences larger fluctuations and is considered to be riskier than TIP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Loading charts...

Volatility by Period

VBTIPDifference

Volatility (1M)

Calculated over the trailing 1-month period

4.40%

0.89%

+3.51%

Volatility (6M)

Calculated over the trailing 6-month period

11.73%

2.32%

+9.41%

Volatility (1Y)

Calculated over the trailing 1-year period

16.27%

3.43%

+12.84%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

20.75%

6.21%

+14.54%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

21.43%

5.74%

+15.69%

VB vs. TIP - Expense Ratio Comparison

VB has a 0.05% expense ratio, which is lower than TIP's 0.19% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VB vs. TIP - Dividend Comparison

VB's dividend yield for the trailing twelve months is around 1.19%, less than TIP's 3.75% yield.

PositionTTM20252024202320222021202020192018201720162015
TIP
iShares TIPS Bond ETF		3.75%3.46%2.52%2.73%6.96%4.28%1.17%1.75%2.71%2.07%1.48%0.34%
VB
Vanguard Small-Cap ETF		1.19%1.33%1.30%1.55%1.59%1.24%1.14%1.39%1.67%1.35%1.50%1.48%

Frequently Asked Questions

VB and TIP have a correlation of 0.22, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VB has higher volatility (4.40%) compared to TIP (0.89%). In terms of maximum drawdown, VB dropped -59.56% vs TIP's -14.57%.

On 10-year performance, VB leads with 11.38% vs 2.59% for TIP. On fees, VB is cheaper at 0.05% per year. On volatility, TIP has been the lower-risk option at 0.89%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, VB has performed better with a 11.38% return vs 2.59%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VB is cheaper with a 0.05% expense ratio, compared with 0.19% for TIP.

TIP has the higher dividend yield at 3.75%, compared with 1.19% for VB.

VB is categorized as Small Cap Blend Equities, while TIP is Inflation-Protected Bonds. VB tracks CRSP US Small Cap Index, while TIP tracks Barclays Capital U.S. Treasury Inflation Protected Securities (TIPS) Index (Series-L). They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.05% for VB and 0.19% for TIP.

VB currently has the higher Sharpe Ratio (1.94 vs 1.49), 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.

Portfolio Optimizer

Find the right allocation for VB and TIP

Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.

Open Portfolio Optimizer