VIPSX vs. TIP

Last updated Jul 14, 2026

VIPSX (Vanguard Inflation-Protected Securities Fund Investor Shares) and TIP (iShares TIPS Bond ETF) are both Inflation-Protected Bonds funds - VIPSX tracks the Bloomberg U.S. Treasury Inflation Protected Securities Index while TIP tracks the ICE U.S. Treasury Inflation Linked Bond Index. Both are passively managed. Over the past 10 years, VIPSX returned 2.28%/yr vs 2.33%/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

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Inflation-Protected Securities Fund Investor Shares (VIPSX) and iShares TIPS Bond ETF (TIP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with VIPSX having a 0.81% return and TIP slightly lower at 0.80%. Both investments have delivered pretty close results over the past 10 years, with VIPSX having a 2.28% annualized return and TIP not far ahead at 2.33%.

VIPSX

• 1D: 0.00%
• 1M: -0.35%
• 6M: 0.64%
• YTD: 0.81%
• 1Y: 3.29%
• 3Y*: 4.03%
• 5Y*: 0.66%
• 10Y*: 2.28%

TIP

• 1D: -0.20%
• 1M: -0.59%
• 6M: 0.55%
• YTD: 0.80%
• 1Y: 3.09%
• 3Y*: 3.62%
• 5Y*: 0.52%
• 10Y*: 2.33%

*Multi-year figures are annualized to reflect compound growth (CAGR)

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	0.81%	6.77%	1.74%	3.73%	-12.04%	5.57%	10.90%	8.06%	-1.48%	2.81%
TIP iShares TIPS Bond ETF	0.80%	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 0.93, 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	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.97
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 0.93 to 0.98 - a consistent structural relationship.

Return for Risk

VIPSX vs. TIP — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VIPSX

VIPSX Risk / Return Rank: 21
VIPSX Sharpe Ratio Rank: 18
VIPSX Sortino Ratio Rank: 17
VIPSX Omega Ratio Rank: 16
VIPSX Calmar Ratio Rank: 28
VIPSX Martin Ratio Rank: 24

TIP

TIP Risk / Return Rank: 32
TIP Sharpe Ratio Rank: 30
TIP Sortino Ratio Rank: 29
TIP Omega Ratio Rank: 27
TIP Calmar Ratio Rank: 38
TIP Martin Ratio Rank: 37

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.

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 ratio: Return per unit of total volatility	0.89	0.89	0.00
Sortino ratio: Return per unit of downside risk	1.31	1.32	-0.01
Omega ratio: Gain probability vs. loss probability	1.15	1.16	0.00
Calmar ratio: Return relative to maximum drawdown	1.51	1.57	-0.06
Martin ratio: Return relative to average drawdown	4.43	4.50	-0.07

VIPSX vs. TIP - Sharpe Ratio Comparison

The current VIPSX Sharpe Ratio is 0.89, which is comparable to the TIP Sharpe Ratio of 0.89. The chart below compares the historical Sharpe Ratios of VIPSX 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.

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.

Drawdown Indicators

	VIPSX	TIP	Difference
Max Drawdown Largest 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%	-4.50%	-0.07%
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 Drawdown Current decline from peak	-0.88%	-1.05%	+0.17%
Average Drawdown Average peak-to-trough decline	-3.23%	-3.42%	+0.19%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.69%	0.69%	0.00%

Volatility

VIPSX vs. TIP - Volatility Comparison

The current volatility for Vanguard Inflation-Protected Securities Fund Investor Shares (VIPSX) is 1.17%, while iShares TIPS Bond ETF (TIP) has a volatility of 1.26%. 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.

Volatility by Period

	VIPSX	TIP	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.17%	1.26%	-0.09%
Volatility (6M) Calculated over the trailing 6-month period	2.54%	2.54%	0.00%
Volatility (1Y) Calculated over the trailing 1-year period	3.42%	3.48%	-0.06%
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	5.33%	5.73%	-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 4.96%, more than TIP's 4.45% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TIP iShares TIPS Bond ETF	4.45%	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	4.96%	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

Can I hold both VIPSX and TIP in my portfolio?

With a correlation of 0.93, 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.

Which is riskier, VIPSX or TIP?

TIP has higher volatility (1.26%) compared to VIPSX (1.17%). In terms of maximum drawdown, VIPSX dropped -15.13% vs TIP's -14.57%.

Which has better risk-adjusted returns?

TIP currently has the higher Sharpe Ratio (0.89 vs 0.89), 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.