VIPSX vs. TIP
VIPSX (Vanguard Inflation-Protected Securities Fund Investor Shares) and TIP (iShares TIPS Bond ETF) are both Inflation-Protected Bonds funds. Over the past 10 years, VIPSX returned 2.39%/yr vs 2.43%/yr for TIP. With a 0.95 correlation, they move nearly in lockstep. VIPSX charges 0.20%/yr vs 0.18%/yr for TIP.
Performance
VIPSX vs. TIP - Performance Comparison
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Returns By Period
In the year-to-date period, VIPSX achieves a 0.65% return, which is significantly lower than TIP's 0.74% return. Both investments have delivered pretty close results over the past 10 years, with VIPSX having a 2.39% annualized return and TIP not far ahead at 2.43%.
VIPSX
- 1D
- -0.34%
- 1M
- -0.00%
- YTD
- 0.65%
- 6M
- 0.83%
- 1Y
- 3.43%
- 3Y*
- 3.52%
- 5Y*
- 0.78%
- 10Y*
- 2.39%
TIP
- 1D
- -0.04%
- 1M
- -0.19%
- YTD
- 0.74%
- 6M
- 0.81%
- 1Y
- 3.34%
- 3Y*
- 3.52%
- 5Y*
- 0.82%
- 10Y*
- 2.43%
VIPSX vs. TIP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VIPSX Vanguard Inflation-Protected Securities Fund Investor Shares | 0.65% | 6.77% | 1.74% | 3.73% | -12.04% | 5.57% | 10.90% | 8.06% | -1.48% | 2.81% |
TIP iShares TIPS Bond ETF | 0.74% | 6.77% | 1.65% | 3.80% | -12.26% | 5.68% | 10.84% | 8.35% | -1.42% | 2.92% |
Correlation
The correlation between VIPSX and TIP is 0.94, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.94 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.98 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.98 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.97 |
Correlation (All Time) Calculated using the full available price history since Dec 5, 2003 | 0.95 |
The correlation between VIPSX and TIP has been stable across timeframes, ranging from 0.94 to 0.98 - a consistent structural relationship.
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Return for Risk
VIPSX vs. TIP — Risk / Return Rank
VIPSX
TIP
VIPSX vs. TIP - Risk-Adjusted Trends 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.
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.
| VIPSX | TIP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.07 | ||
| Sortino ratioReturn per unit of downside risk | +0.08 | ||
| Omega ratioGain probability vs. loss probability | 1.18 | 1.17 | +0.01 |
| Calmar ratioReturn relative to maximum drawdown | 1.75 | 1.70 | +0.05 |
| Martin ratioReturn relative to average drawdown | 5.28 | 4.99 | +0.29 |
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Drawdowns
VIPSX vs. TIP - Drawdown Comparison
The maximum VIPSX drawdown since its inception was -15.13%, roughly equal to the maximum TIP drawdown of -14.57%. Use the drawdown chart below to compare losses from any high point for VIPSX and TIP.
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Drawdown Indicators
| VIPSX | TIP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -15.13% | -14.57% | -0.56% |
Max Drawdown (1Y)Largest decline over 1 year | -2.02% | -1.98% | -0.04% |
Max Drawdown (3Y)Largest decline over 3 years | -4.57% | -4.54% | -0.03% |
Max Drawdown (5Y)Largest decline over 5 years | -14.55% | -14.51% | -0.04% |
Max Drawdown (10Y)Largest decline over 10 years | -14.55% | -14.51% | -0.04% |
Current DrawdownCurrent decline from peak | -1.04% | -1.11% | +0.07% |
Average DrawdownAverage peak-to-trough decline | -3.23% | -3.43% | +0.20% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.67% | 0.67% | 0.00% |
Volatility
VIPSX vs. TIP - Volatility Comparison
Vanguard Inflation-Protected Securities Fund Investor Shares (VIPSX) and iShares TIPS Bond ETF (TIP) have volatilities of 1.23% and 1.22%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VIPSX | TIP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.23% | 1.22% | +0.01% |
Volatility (6M)Calculated over the trailing 6-month period | 2.50% | 2.47% | +0.03% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.40% | 3.44% | -0.04% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.98% | 6.20% | -0.22% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.34% | 5.74% | -0.40% |
VIPSX vs. TIP - Expense Ratio Comparison
VIPSX has a 0.20% expense ratio, which is higher than TIP's 0.18% 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
VIPSX vs. TIP - Dividend Comparison
VIPSX's dividend yield for the trailing twelve months is around 4.43%, more than TIP's 3.79% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TIP iShares TIPS Bond ETF | 3.79% | 3.46% | 2.52% | 2.73% | 6.96% | 4.28% | 1.17% | 1.75% | 2.71% | 2.07% | 1.48% | 0.34% |
VIPSX Vanguard Inflation-Protected Securities Fund Investor Shares | 4.43% | 4.64% | 4.07% | 4.20% | 8.34% | 5.03% | 1.28% | 2.22% | 3.03% | 2.32% | 3.38% | 0.77% |
Frequently Asked Questions
With a correlation of 0.94, VIPSX and TIP move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
VIPSX has higher volatility (1.23%) compared to TIP (1.22%). In terms of maximum drawdown, VIPSX dropped -15.13% vs TIP's -14.57%.
VIPSX currently has the higher Sharpe Ratio (1.04 vs 0.97), 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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