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VDE vs. TIP
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VDE vs. TIP

Last updated Jun 9, 2026

VDE (Vanguard Energy ETF) and TIP (iShares TIPS Bond ETF) are both exchange-traded funds - VDE is a Energy Equities fund tracking the MSCI US Investable Market Energy 25/50 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, VDE returned 9.47%/yr vs 2.45%/yr for TIP. At a correlation of -0.06, they often move in opposite directions. VDE charges 0.09%/yr vs 0.18%/yr for TIP.

Performance

VDE vs. TIP - Performance Comparison

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

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Returns By Period

In the year-to-date period, VDE achieves a 31.33% return, which is significantly higher than TIP's 0.95% return. Over the past 10 years, VDE has outperformed TIP with an annualized return of 9.47%, while TIP has yielded a comparatively lower 2.45% annualized return.

VDE

1D
1.27%
1M
3.82%
YTD
31.33%
6M
29.93%
1Y
44.64%
3Y*
16.98%
5Y*
20.26%
10Y*
9.47%

TIP

1D
-0.11%
1M
-0.90%
YTD
0.95%
6M
0.97%
1Y
4.81%
3Y*
3.70%
5Y*
0.88%
10Y*
2.45%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VDE vs. TIP - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VDE
Vanguard Energy ETF		31.33%7.11%6.75%0.03%62.89%56.31%-33.02%9.28%-19.95%-2.50%
TIP
iShares TIPS Bond ETF		0.95%6.77%1.65%3.80%-12.26%5.68%10.84%8.35%-1.42%2.92%

Correlation

The correlation between VDE and TIP is -0.08, 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

-0.08

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

0.03

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

0.05

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

-0.02

Correlation (All Time)
Calculated using the full available price history since Sep 30, 2004

-0.06

The correlation between VDE and TIP shifts across timeframes, from -0.08 (1 year) to 0.05 (5 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 Energy ETF

iShares TIPS Bond ETF

Often compared with VDE:
VDE vs. XLEVDE vs. IXCVDE vs. FENYVDE vs. VOOVDE vs. VGENXVDE vs. XOPVDE vs. VGT
Often compared with TIP:
TIP vs. SCHPTIP vs. VTIPTIP vs. SGOVTIP vs. STIPTIP vs. FIPDXTIP vs. BNDTIP vs. IEF

Return for Risk

VDE vs. TIP — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VDE
VDE Risk / Return Rank: 7171
Overall Rank
VDE Sharpe Ratio Rank: 7676
Sharpe Ratio Rank
VDE Sortino Ratio Rank: 6969
Sortino Ratio Rank
VDE Omega Ratio Rank: 6565
Omega Ratio Rank
VDE Calmar Ratio Rank: 8080
Calmar Ratio Rank
VDE Martin Ratio Rank: 6666
Martin Ratio Rank
TIP
TIP Risk / Return Rank: 4848
Overall Rank
TIP Sharpe Ratio Rank: 4545
Sharpe Ratio Rank
TIP Sortino Ratio Rank: 5050
Sortino Ratio Rank
TIP Omega Ratio Rank: 4444
Omega Ratio Rank
TIP Calmar Ratio Rank: 5454
Calmar Ratio Rank
TIP Martin Ratio Rank: 4848
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.

VDE vs. TIP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Energy ETF (VDE) 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.

VDETIPDifference
Sharpe ratioReturn per unit of total volatility
2.21
1.43

+0.77

Sortino ratioReturn per unit of downside risk
2.83
2.21

+0.62

Omega ratioGain probability vs. loss probability

1.35

1.26

+0.10

Calmar ratioReturn relative to maximum drawdown

3.80

2.45

+1.35

Martin ratioReturn relative to average drawdown

10.98

7.37

+3.61

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

VDE vs. TIP - Sharpe Ratio Comparison

The current VDE Sharpe Ratio is 2.21, which is higher than the TIP Sharpe Ratio of 1.43. The chart below compares the historical Sharpe Ratios of VDE 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.

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Sharpe Ratios by Period

VDETIPDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.21

1.43

+0.77

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.77

0.14

+0.63

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.32

0.43

-0.11

Sharpe Ratio (All Time)

Calculated using the full available price history

0.28

0.57

-0.29

Drawdowns

VDE vs. TIP - Drawdown Comparison

The maximum VDE drawdown since its inception was -74.20%, which is greater than TIP's maximum drawdown of -14.57%. Use the drawdown chart below to compare losses from any high point for VDE and TIP.

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Drawdown Indicators

VDETIPDifference

Max Drawdown

Largest peak-to-trough decline

-74.20%

-14.57%

-59.63%

Max Drawdown (1Y)

Largest decline over 1 year

-11.80%

-1.98%

-9.82%

Max Drawdown (3Y)

Largest decline over 3 years

-21.41%

-4.54%

-16.87%

Max Drawdown (5Y)

Largest decline over 5 years

-26.58%

-14.51%

-12.07%

Max Drawdown (10Y)

Largest decline over 10 years

-69.29%

-14.51%

-54.78%

Current Drawdown

Current decline from peak

-7.08%

-0.90%

-6.18%

Average Drawdown

Average peak-to-trough decline

-19.96%

-3.43%

-16.53%

Ulcer Index

Depth and duration of drawdowns from previous peaks

4.08%

0.65%

+3.43%

Volatility

VDE vs. TIP - Volatility Comparison

Vanguard Energy ETF (VDE) has a higher volatility of 6.96% compared to iShares TIPS Bond ETF (TIP) at 1.01%. This indicates that VDE'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.

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Volatility by Period

VDETIPDifference

Volatility (1M)

Calculated over the trailing 1-month period

6.96%

1.01%

+5.95%

Volatility (6M)

Calculated over the trailing 6-month period

16.37%

2.33%

+14.04%

Volatility (1Y)

Calculated over the trailing 1-year period

20.36%

3.38%

+16.98%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

26.42%

6.21%

+20.21%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

29.93%

5.74%

+24.19%

VDE vs. TIP - Expense Ratio Comparison

VDE has a 0.09% 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

VDE vs. TIP - Dividend Comparison

VDE's dividend yield for the trailing twelve months is around 2.39%, less than TIP's 3.78% yield.

PositionTTM20252024202320222021202020192018201720162015
TIP
iShares TIPS Bond ETF		3.78%3.46%2.52%2.73%6.96%4.28%1.17%1.75%2.71%2.07%1.48%0.34%
VDE
Vanguard Energy ETF		2.39%3.11%3.23%3.34%3.65%4.13%4.76%3.42%3.35%2.90%2.31%3.17%

Frequently Asked Questions

VDE and TIP have a correlation of -0.08, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VDE has higher volatility (6.96%) compared to TIP (1.01%). In terms of maximum drawdown, VDE dropped -74.20% vs TIP's -14.57%.

On 10-year performance, VDE leads with 9.47% vs 2.45% for TIP. On fees, VDE is cheaper at 0.09% per year. On volatility, TIP has been the lower-risk option at 1.01%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, VDE has performed better with a 9.47% return vs 2.45%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VDE is cheaper with a 0.09% expense ratio, compared with 0.18% for TIP.

TIP has the higher dividend yield at 3.78%, compared with 2.39% for VDE.

VDE is categorized as Energy Equities, while TIP is Inflation-Protected Bonds. VDE tracks MSCI US Investable Market Energy 25/50 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: 0.09% for VDE and 0.18% for TIP.

VDE currently has the higher Sharpe Ratio (2.21 vs 1.43), 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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