VCB.TO vs. VTIP

Last updated Jun 4, 2026

VCB.TO (Vanguard Canadian Corporate Bond Index ETF) and VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) are both exchange-traded funds - VCB.TO is a Corporate Bonds fund tracking the Bloomberg Global Aggregate Canadian Corporate Float Adjusted Bond Index, while VTIP is a Inflation-Protected Bonds fund tracking the Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index. Both are passively managed. Over the past 5 years, VCB.TO returned 2.32%/yr vs 6.32%/yr for VTIP. At a 0.11 correlation, their price movements are largely independent. VCB.TO charges 0.17%/yr vs 0.03%/yr for VTIP.

Performance

VCB.TO vs. VTIP - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in Vanguard Canadian Corporate Bond Index ETF (VCB.TO) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

VCB.TO is traded in CAD, while VTIP is traded in USD. To make them comparable, the VTIP values have been converted to CAD using the latest available exchange rates.

Returns By Period

In the year-to-date period, VCB.TO achieves a 1.58% return, which is significantly lower than VTIP's 3.35% return.

VCB.TO

• 1D: 0.04%
• 1M: 1.53%
• YTD: 1.58%
• 6M: 1.39%
• 1Y: 4.28%
• 3Y*: 6.09%
• 5Y*: 2.32%
• 10Y*: —

VTIP

• 1D: 0.41%
• 1M: 2.04%
• YTD: 3.35%
• 6M: 1.64%
• 1Y: 6.05%
• 3Y*: 6.48%
• 5Y*: 6.32%
• 10Y*: 3.89%

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

VCB.TO vs. VTIP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VCB.TO Vanguard Canadian Corporate Bond Index ETF	1.58%	4.46%	6.63%	7.98%	-8.96%	-1.55%	8.11%	6.20%	0.28%	1.75%
VTIP Vanguard Short-Term Inflation-Protected Securities ETF	3.35%	1.20%	13.74%	2.31%	3.98%	4.41%	3.17%	-0.29%	9.09%	-3.83%

Correlation

The correlation between VCB.TO and VTIP is 0.04, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.04
Correlation (3Y) Calculated over the trailing 3-year period	0.09
Correlation (5Y) Calculated over the trailing 5-year period	0.12
Correlation (All Time) Calculated using the full available price history since Feb 10, 2017	0.11

Return for Risk

VCB.TO vs. VTIP — Risk / Return Rank

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

VCB.TO

VCB.TO Risk / Return Rank: 34
VCB.TO Sharpe Ratio Rank: 34
VCB.TO Sortino Ratio Rank: 33
VCB.TO Omega Ratio Rank: 34
VCB.TO Calmar Ratio Rank: 35
VCB.TO Martin Ratio Rank: 35

VTIP

VTIP Risk / Return Rank: 93
VTIP Sharpe Ratio Rank: 90
VTIP Sortino Ratio Rank: 95
VTIP Omega Ratio Rank: 93
VTIP Calmar Ratio Rank: 93
VTIP Martin Ratio Rank: 93

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.

VCB.TO vs. VTIP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Canadian Corporate Bond Index ETF (VCB.TO) 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.

	VCB.TO	VTIP	Difference
Sharpe ratio: Return per unit of total volatility	1.26	1.32	-0.06
Sortino ratio: Return per unit of downside risk	1.76	1.92	-0.16
Omega ratio: Gain probability vs. loss probability	1.23	1.23	0.00
Calmar ratio: Return relative to maximum drawdown	1.75	1.57	+0.18
Martin ratio: Return relative to average drawdown	5.51	4.30	+1.21
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VCB.TO vs. VTIP - Sharpe Ratio Comparison

The current VCB.TO Sharpe Ratio is 1.26, which is comparable to the VTIP Sharpe Ratio of 1.32. The chart below compares the historical Sharpe Ratios of VCB.TO and VTIP, 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

	VCB.TO	VTIP	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.26	1.32	-0.06
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.48	1.03	-0.55
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.60	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.49	0.72	-0.23

Drawdowns

VCB.TO vs. VTIP - Drawdown Comparison

The maximum VCB.TO drawdown since its inception was -13.99%, roughly equal to the maximum VTIP drawdown of -13.94%. Use the drawdown chart below to compare losses from any high point for VCB.TO and VTIP.

Drawdown Indicators

	VCB.TO	VTIP	Difference
Max Drawdown Largest peak-to-trough decline	-13.99%	-13.94%	-0.05%
Max Drawdown (1Y) Largest decline over 1 year	-2.45%	-3.87%	+1.42%
Max Drawdown (3Y) Largest decline over 3 years	-3.22%	-5.45%	+2.23%
Max Drawdown (5Y) Largest decline over 5 years	-13.17%	-5.45%	-7.72%
Max Drawdown (10Y) Largest decline over 10 years	—	-11.42%	—
Current Drawdown Current decline from peak	-0.03%	0.00%	-0.03%
Average Drawdown Average peak-to-trough decline	-2.86%	-3.32%	+0.46%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.78%	1.41%	-0.63%

Volatility

VCB.TO vs. VTIP - Volatility Comparison

Vanguard Canadian Corporate Bond Index ETF (VCB.TO) has a higher volatility of 1.26% compared to Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) at 0.85%. This indicates that VCB.TO'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.

Volatility by Period

	VCB.TO	VTIP	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.26%	0.85%	+0.41%
Volatility (6M) Calculated over the trailing 6-month period	2.64%	3.46%	-0.82%
Volatility (1Y) Calculated over the trailing 1-year period	3.42%	4.61%	-1.19%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.89%	6.16%	-1.27%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.51%	6.50%	-0.99%

VCB.TO vs. VTIP - Expense Ratio Comparison

VCB.TO has a 0.17% expense ratio, which is higher than VTIP's 0.03% 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

VCB.TO vs. VTIP - Dividend Comparison

VCB.TO's dividend yield for the trailing twelve months is around 3.87%, more than VTIP's 3.58% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
VCB.TO Vanguard Canadian Corporate Bond Index ETF	3.87%	3.88%	3.74%	3.41%	3.21%	2.69%	2.75%	2.82%	2.85%	2.51%	0.00%
VTIP Vanguard Short-Term Inflation-Protected Securities ETF	3.58%	3.81%	2.70%	2.86%	6.84%	4.68%	1.20%	1.95%	2.45%	1.52%	0.76%

Frequently Asked Questions

Can I hold both VCB.TO and VTIP in my portfolio?

VCB.TO and VTIP have a correlation of 0.04, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VCB.TO or VTIP?

On fees, VTIP is cheaper at 0.03% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VCB.TO or VTIP?

VTIP is cheaper with a 0.03% expense ratio, compared with 0.17% for VCB.TO.

What is the main difference between VCB.TO and VTIP?

VCB.TO is categorized as Corporate Bonds, while VTIP is Inflation-Protected Bonds. VCB.TO tracks Bloomberg Global Aggregate Canadian Corporate Float Adjusted Bond Index, while VTIP tracks Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index. Their fees differ too: 0.17% for VCB.TO and 0.03% for VTIP.