VMNFX vs. TIP
VMNFX (Vanguard Market Neutral Fund Investor Shares) and TIP (iShares TIPS Bond ETF) are both funds - VMNFX is a Long-Short fund managed by Vanguard, while TIP is a Inflation-Protected Bonds fund tracking the ICE U.S. Treasury Inflation Linked Bond Index. Over the past 10 years, VMNFX returned 5.04%/yr vs 2.53%/yr for TIP. At a correlation of -0.04, they often move in opposite directions. VMNFX charges 1.31%/yr vs 0.18%/yr for TIP.
Performance
VMNFX vs. TIP - Performance Comparison
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Returns By Period
In the year-to-date period, VMNFX achieves a 12.24% return, which is significantly higher than TIP's 1.40% return. Over the past 10 years, VMNFX has outperformed TIP with an annualized return of 5.04%, while TIP has yielded a comparatively lower 2.53% annualized return.
VMNFX
- 1D
- 0.32%
- 1M
- 1.75%
- YTD
- 12.24%
- 6M
- 13.84%
- 1Y
- 19.63%
- 3Y*
- 13.34%
- 5Y*
- 13.18%
- 10Y*
- 5.04%
TIP
- 1D
- 0.01%
- 1M
- -0.21%
- YTD
- 1.40%
- 6M
- 1.42%
- 1Y
- 4.61%
- 3Y*
- 4.00%
- 5Y*
- 0.91%
- 10Y*
- 2.53%
VMNFX vs. TIP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VMNFX Vanguard Market Neutral Fund Investor Shares | 12.24% | 9.27% | 5.78% | 12.23% | 13.48% | 23.24% | -11.58% | -9.57% | 0.60% | -4.89% |
TIP iShares TIPS Bond ETF | 1.40% | 6.77% | 1.65% | 3.80% | -12.26% | 5.68% | 10.84% | 8.35% | -1.42% | 2.92% |
Correlation
The correlation between VMNFX and TIP is -0.09, 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 | -0.09 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.12 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.14 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.12 |
Correlation (All Time) Calculated using the full available price history since Dec 5, 2003 | -0.04 |
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Return for Risk
VMNFX vs. TIP — Risk / Return Rank
VMNFX
TIP
VMNFX vs. TIP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Market Neutral Fund Investor Shares (VMNFX) 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.
| VMNFX | TIP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.24 | ||
| Sortino ratioReturn per unit of downside risk | +1.83 | ||
| Omega ratioGain probability vs. loss probability | 1.48 | 1.24 | +0.24 |
| Calmar ratioReturn relative to maximum drawdown | 4.33 | 2.34 | +1.99 |
| Martin ratioReturn relative to average drawdown | 12.14 | 7.00 | +5.14 |
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Drawdowns
VMNFX vs. TIP - Drawdown Comparison
The maximum VMNFX drawdown since its inception was -26.42%, which is greater than TIP's maximum drawdown of -14.57%. Use the drawdown chart below to compare losses from any high point for VMNFX and TIP.
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Drawdown Indicators
| VMNFX | TIP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -26.42% | -14.57% | -11.85% |
Max Drawdown (1Y)Largest decline over 1 year | -4.65% | -1.98% | -2.67% |
Max Drawdown (3Y)Largest decline over 3 years | -5.44% | -4.54% | -0.90% |
Max Drawdown (5Y)Largest decline over 5 years | -6.75% | -14.51% | +7.76% |
Max Drawdown (10Y)Largest decline over 10 years | -25.09% | -14.51% | -10.58% |
Current DrawdownCurrent decline from peak | -0.19% | -0.46% | +0.27% |
Average DrawdownAverage peak-to-trough decline | -8.75% | -3.43% | -5.32% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.66% | 0.66% | +1.00% |
Volatility
VMNFX vs. TIP - Volatility Comparison
Vanguard Market Neutral Fund Investor Shares (VMNFX) has a higher volatility of 1.65% compared to iShares TIPS Bond ETF (TIP) at 1.03%. This indicates that VMNFX'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
| VMNFX | TIP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.65% | 1.03% | +0.62% |
Volatility (6M)Calculated over the trailing 6-month period | 5.57% | 2.32% | +3.25% |
Volatility (1Y)Calculated over the trailing 1-year period | 7.71% | 3.39% | +4.32% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.21% | 6.21% | +1.00% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.39% | 5.74% | +0.65% |
VMNFX vs. TIP - Expense Ratio Comparison
VMNFX has a 1.31% expense ratio, which is higher than TIP's 0.18% expense ratio.
Dividends
VMNFX vs. TIP - Dividend Comparison
VMNFX's dividend yield for the trailing twelve months is around 3.13%, less than TIP's 3.76% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TIP iShares TIPS Bond ETF | 3.76% | 3.46% | 2.52% | 2.73% | 6.96% | 4.28% | 1.17% | 1.75% | 2.71% | 2.07% | 1.48% | 0.34% |
VMNFX Vanguard Market Neutral Fund Investor Shares | 3.13% | 3.53% | 5.61% | 5.09% | 0.75% | 0.16% | 0.81% | 3.16% | 0.94% | 1.07% | 0.38% | 0.02% |
Frequently Asked Questions
VMNFX and TIP have a correlation of -0.09, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VMNFX has higher volatility (1.65%) compared to TIP (1.03%). In terms of maximum drawdown, VMNFX dropped -26.42% vs TIP's -14.57%.
VMNFX currently has the higher Sharpe Ratio (2.61 vs 1.37), 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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