VIPSX vs. TIP
Compare and contrast key facts about Vanguard Inflation-Protected Securities Fund Investor Shares (VIPSX) and iShares TIPS Bond ETF (TIP).
VIPSX is managed by Vanguard. It was launched on Jun 29, 2000. TIP is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. Treasury Inflation Protected Securities (TIPS) Index (Series-L). It was launched on Dec 4, 2003.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VIPSX or TIP.
Key characteristics
| VIPSX | TIP | |
|---|---|---|
| YTD Return | -1.59% | -1.53% |
| 1Y Return | -1.39% | -1.25% |
| 3Y Return (Ann) | -1.67% | -1.62% |
| 5Y Return (Ann) | 1.87% | 1.90% |
| 10Y Return (Ann) | 1.75% | 1.80% |
| Sharpe Ratio | -0.31 | -0.26 |
| Daily Std Dev | 6.02% | 5.99% |
| Max Drawdown | -15.13% | -14.56% |
| Current Drawdown | -10.79% | -10.78% |
Correlation
The correlation between VIPSX and TIP is 0.95, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
VIPSX vs. TIP - Performance Comparison
The year-to-date returns for both investments are quite close, with VIPSX having a -1.59% return and TIP slightly higher at -1.53%. Both investments have delivered pretty close results over the past 10 years, with VIPSX having a 1.75% annualized return and TIP not far ahead at 1.80%. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
VIPSX vs. TIP - Expense Ratio Comparison
VIPSX has a 0.20% expense ratio, which is higher than TIP's 0.19% 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%.
Risk-Adjusted Performance
VIPSX vs. TIP - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Inflation-Protected Securities Fund Investor Shares (VIPSX) 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.
Dividends
VIPSX vs. TIP - Dividend Comparison
VIPSX's dividend yield for the trailing twelve months is around 4.09%, more than TIP's 2.72% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VIPSX Vanguard Inflation-Protected Securities Fund Investor Shares | 4.09% | 4.20% | 8.34% | 5.03% | 1.28% | 2.22% | 3.02% | 2.32% | 3.38% | 0.77% | 2.25% | 2.01% |
TIP iShares TIPS Bond ETF | 2.72% | 2.73% | 6.96% | 4.28% | 1.17% | 1.75% | 2.71% | 2.07% | 1.48% | 0.34% | 1.67% | 1.15% |
Drawdowns
VIPSX vs. TIP - Drawdown Comparison
The maximum VIPSX drawdown since its inception was -15.13%, roughly equal to the maximum TIP drawdown of -14.56%. Use the drawdown chart below to compare losses from any high point for VIPSX and TIP. For additional features, visit the drawdowns tool.
Volatility
VIPSX vs. TIP - Volatility Comparison
The current volatility for Vanguard Inflation-Protected Securities Fund Investor Shares (VIPSX) is 1.49%, while iShares TIPS Bond ETF (TIP) has a volatility of 1.58%. This indicates that VIPSX experiences smaller price fluctuations and is considered to be less risky than TIP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.