PortfoliosLab logoPortfoliosLab logo

Documentation

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

VFH vs. TIP

Last updated Jun 9, 2026

VFH (Vanguard Financials ETF) and TIP (iShares TIPS Bond ETF) are both exchange-traded funds - VFH is a Financials Equities fund tracking the MSCI US Investable Market Financials 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, VFH returned 12.59%/yr vs 2.45%/yr for TIP. At a correlation of -0.15, they often move in opposite directions. VFH charges 0.09%/yr vs 0.18%/yr for TIP.

Performance

VFH vs. TIP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Financials ETF (VFH) 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, VFH achieves a -4.26% return, which is significantly lower than TIP's 0.95% return. Over the past 10 years, VFH has outperformed TIP with an annualized return of 12.59%, while TIP has yielded a comparatively lower 2.45% annualized return.

VFH

1D
-0.53%
1M
1.01%
YTD
-4.26%
6M
-1.64%
1Y
4.15%
3Y*
18.86%
5Y*
8.65%
10Y*
12.59%

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)

VFH vs. TIP - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VFH
Vanguard Financials ETF		-4.26%14.91%30.44%14.17%-12.31%35.22%-1.96%31.57%-13.52%19.99%
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 VFH and TIP is 0.10, which is low. Their price movements are largely independent, making them effective diversification partners.

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

0.10

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

0.16

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

0.10

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

-0.07

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

-0.15

The correlation between VFH and TIP shifts across timeframes, from -0.15 (all time) to 0.16 (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 Financials ETF

iShares TIPS Bond ETF

Often compared with VFH:
VFH vs. XLFVFH vs. VOOVFH vs. FNCLVFH vs. IYFVFH vs. VHTVFH vs. KBWBVFH vs. VGT
Often compared with TIP:
TIP vs. SCHPTIP vs. VTIPTIP vs. SGOVTIP vs. STIPTIP vs. FIPDXTIP vs. BNDTIP vs. IEF

Return for Risk

VFH vs. TIP — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VFH
VFH Risk / Return Rank: 1313
Overall Rank
VFH Sharpe Ratio Rank: 1414
Sharpe Ratio Rank
VFH Sortino Ratio Rank: 1313
Sortino Ratio Rank
VFH Omega Ratio Rank: 1313
Omega Ratio Rank
VFH Calmar Ratio Rank: 1313
Calmar Ratio Rank
VFH Martin Ratio Rank: 1313
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.

VFH vs. TIP - Risk-Adjusted Trends Comparison

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

VFHTIPDifference
Sharpe ratioReturn per unit of total volatility
0.28
1.43

-1.15

Sortino ratioReturn per unit of downside risk
0.48
2.21

-1.73

Omega ratioGain probability vs. loss probability

1.06

1.26

-0.20

Calmar ratioReturn relative to maximum drawdown

0.28

2.45

-2.16

Martin ratioReturn relative to average drawdown

0.74

7.37

-6.62

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

VFH vs. TIP - Sharpe Ratio Comparison

The current VFH Sharpe Ratio is 0.28, which is lower than the TIP Sharpe Ratio of 1.43. The chart below compares the historical Sharpe Ratios of VFH 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

VFHTIPDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

0.28

1.43

-1.15

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.45

0.14

+0.31

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.56

0.43

+0.13

Sharpe Ratio (All Time)

Calculated using the full available price history

0.24

0.57

-0.32

Drawdowns

VFH vs. TIP - Drawdown Comparison

The maximum VFH drawdown since its inception was -78.61%, which is greater than TIP's maximum drawdown of -14.57%. Use the drawdown chart below to compare losses from any high point for VFH and TIP.

Loading charts...

Drawdown Indicators

VFHTIPDifference

Max Drawdown

Largest peak-to-trough decline

-78.61%

-14.57%

-64.04%

Max Drawdown (1Y)

Largest decline over 1 year

-14.75%

-1.98%

-12.77%

Max Drawdown (3Y)

Largest decline over 3 years

-17.30%

-4.54%

-12.76%

Max Drawdown (5Y)

Largest decline over 5 years

-25.66%

-14.51%

-11.15%

Max Drawdown (10Y)

Largest decline over 10 years

-44.42%

-14.51%

-29.91%

Current Drawdown

Current decline from peak

-7.17%

-0.90%

-6.27%

Average Drawdown

Average peak-to-trough decline

-18.53%

-3.43%

-15.10%

Ulcer Index

Depth and duration of drawdowns from previous peaks

5.60%

0.65%

+4.95%

Volatility

VFH vs. TIP - Volatility Comparison

Vanguard Financials ETF (VFH) has a higher volatility of 4.28% compared to iShares TIPS Bond ETF (TIP) at 1.01%. This indicates that VFH'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

VFHTIPDifference

Volatility (1M)

Calculated over the trailing 1-month period

4.28%

1.01%

+3.27%

Volatility (6M)

Calculated over the trailing 6-month period

11.34%

2.33%

+9.01%

Volatility (1Y)

Calculated over the trailing 1-year period

14.98%

3.38%

+11.60%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

19.34%

6.21%

+13.13%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

22.56%

5.74%

+16.82%

VFH vs. TIP - Expense Ratio Comparison

VFH 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

VFH vs. TIP - Dividend Comparison

VFH's dividend yield for the trailing twelve months is around 1.53%, 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%
VFH
Vanguard Financials ETF		1.53%1.55%1.75%2.08%2.31%1.87%2.21%2.17%2.30%1.53%1.63%2.00%

Frequently Asked Questions

VFH and TIP have a correlation of 0.10, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VFH has higher volatility (4.28%) compared to TIP (1.01%). In terms of maximum drawdown, VFH dropped -78.61% vs TIP's -14.57%.

On 10-year performance, VFH leads with 12.59% vs 2.45% for TIP. On fees, VFH 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, VFH has performed better with a 12.59% return vs 2.45%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VFH 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 1.53% for VFH.

VFH is categorized as Financials Equities, while TIP is Inflation-Protected Bonds. VFH tracks MSCI US Investable Market Financials 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 VFH and 0.18% for TIP.

TIP currently has the higher Sharpe Ratio (1.43 vs 0.28), 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 VFH 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