VCLT vs. TIP
VCLT (Vanguard Long-Term Corporate Bond ETF) and TIP (iShares TIPS Bond ETF) are both exchange-traded funds - VCLT is a Corporate Bonds fund tracking the Bloomberg U.S. 10+ Year Corporate Bond Index, while TIP is a Inflation-Protected Bonds fund tracking the ICE U.S. Treasury Inflation Linked Bond Index. Both are passively managed. Over the past 10 years, VCLT returned 2.27%/yr vs 2.53%/yr for TIP. A 0.69 correlation means they provide meaningful diversification when combined. VCLT charges 0.03%/yr vs 0.18%/yr for TIP.
Performance
VCLT vs. TIP - Performance Comparison
Loading charts...
Returns By Period
The year-to-date returns for both stocks are quite close, with VCLT having a 1.41% return and TIP slightly lower at 1.40%. Over the past 10 years, VCLT has underperformed TIP with an annualized return of 2.27%, while TIP has yielded a comparatively higher 2.53% annualized return.
VCLT
- 1D
- -0.09%
- 1M
- 1.43%
- YTD
- 1.41%
- 6M
- 1.82%
- 1Y
- 5.92%
- 3Y*
- 4.64%
- 5Y*
- -2.06%
- 10Y*
- 2.27%
TIP
- 1D
- 0.01%
- 1M
- -0.21%
- YTD
- 1.40%
- 6M
- 1.42%
- 1Y
- 4.61%
- 3Y*
- 4.00%
- 5Y*
- 0.91%
- 10Y*
- 2.53%
VCLT vs. TIP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VCLT Vanguard Long-Term Corporate Bond ETF | 1.41% | 7.18% | -1.90% | 11.17% | -25.50% | -1.73% | 13.27% | 23.89% | -7.04% | 11.70% |
TIP iShares TIPS Bond ETF | 1.40% | 6.77% | 1.65% | 3.80% | -12.26% | 5.68% | 10.84% | 8.35% | -1.42% | 2.92% |
Correlation
The correlation between VCLT and TIP is 0.77, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.77 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.83 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.74 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.71 |
Correlation (All Time) Calculated using the full available price history since Nov 23, 2009 | 0.69 |
The correlation between VCLT and TIP shifts across timeframes, from 0.69 (all time) to 0.83 (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.
Return for Risk
VCLT vs. TIP — Risk / Return Rank
VCLT
TIP
VCLT vs. TIP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Long-Term Corporate Bond ETF (VCLT) 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.
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.
| VCLT | TIP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.62 | ||
| Sortino ratioReturn per unit of downside risk | -1.00 | ||
| Omega ratioGain probability vs. loss probability | 1.13 | 1.24 | -0.11 |
| Calmar ratioReturn relative to maximum drawdown | 1.13 | 2.34 | -1.21 |
| Martin ratioReturn relative to average drawdown | 2.75 | 7.00 | -4.25 |
Loading charts...
Drawdowns
VCLT vs. TIP - Drawdown Comparison
The maximum VCLT drawdown since its inception was -34.31%, which is greater than TIP's maximum drawdown of -14.57%. Use the drawdown chart below to compare losses from any high point for VCLT and TIP.
Loading charts...
Drawdown Indicators
| VCLT | TIP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -34.31% | -14.57% | -19.74% |
Max Drawdown (1Y)Largest decline over 1 year | -5.25% | -1.98% | -3.27% |
Max Drawdown (3Y)Largest decline over 3 years | -13.03% | -4.54% | -8.49% |
Max Drawdown (5Y)Largest decline over 5 years | -34.31% | -14.51% | -19.80% |
Max Drawdown (10Y)Largest decline over 10 years | -34.31% | -14.51% | -19.80% |
Current DrawdownCurrent decline from peak | -14.00% | -0.46% | -13.54% |
Average DrawdownAverage peak-to-trough decline | -8.17% | -3.43% | -4.74% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.16% | 0.66% | +1.50% |
Volatility
VCLT vs. TIP - Volatility Comparison
Vanguard Long-Term Corporate Bond ETF (VCLT) has a higher volatility of 2.48% compared to iShares TIPS Bond ETF (TIP) at 1.03%. This indicates that VCLT'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
| VCLT | TIP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.48% | 1.03% | +1.45% |
Volatility (6M)Calculated over the trailing 6-month period | 5.91% | 2.32% | +3.59% |
Volatility (1Y)Calculated over the trailing 1-year period | 7.95% | 3.39% | +4.56% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 12.77% | 6.21% | +6.56% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 12.85% | 5.74% | +7.11% |
VCLT vs. TIP - Expense Ratio Comparison
VCLT has a 0.03% expense ratio, which is lower than TIP's 0.18% 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
VCLT vs. TIP - Dividend Comparison
VCLT's dividend yield for the trailing twelve months is around 5.52%, more than TIP's 3.76% 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% |
VCLT Vanguard Long-Term Corporate Bond ETF | 5.52% | 5.51% | 5.19% | 4.67% | 4.44% | 3.07% | 3.16% | 3.81% | 4.55% | 4.01% | 4.33% | 4.68% |
Frequently Asked Questions
VCLT and TIP have a correlation of 0.77, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VCLT has higher volatility (2.48%) compared to TIP (1.03%). In terms of maximum drawdown, VCLT dropped -34.31% vs TIP's -14.57%.
On 10-year performance, TIP leads with 2.53% vs 2.27% for VCLT. On fees, VCLT is cheaper at 0.03% per year. On volatility, TIP has been the lower-risk option at 1.03%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, TIP has performed better with a 2.53% return vs 2.27%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VCLT is cheaper with a 0.03% expense ratio, compared with 0.18% for TIP.
VCLT has the higher dividend yield at 5.52%, compared with 3.76% for TIP.
VCLT is categorized as Corporate Bonds, while TIP is Inflation-Protected Bonds. VCLT tracks Bloomberg U.S. 10+ Year Corporate Bond Index, while TIP tracks ICE U.S. Treasury Inflation Linked Bond Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.03% for VCLT and 0.18% for TIP.
TIP currently has the higher Sharpe Ratio (1.37 vs 0.75), 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.
Find the right allocation for VCLT 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