VMSIX vs. VTIPX

Last updated Aug 1, 2026

VMSIX (Vanguard Multi-Sector Income Bond Inv) and VTIPX (Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares) are both mutual funds - VMSIX is a Multisector Bonds fund actively managed by Vanguard, while VTIPX is a Inflation-Protected Bonds fund tracking the Bloomberg U.S. 0-5 Year Treasury Inflation-Protected Securities Index. VMSIX is actively managed, while VTIPX is passively managed. Over the past 3 years, VMSIX returned 7.18%/yr vs 4.94%/yr for VTIPX. Their 0.54 correlation means they have sometimes moved together and sometimes differently. VMSIX charges 0.45%/yr vs 0.14%/yr for VTIPX.

Performance

VMSIX vs. VTIPX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Multi-Sector Income Bond Inv (VMSIX) and Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares (VTIPX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VMSIX achieves a 0.90% return, which is significantly lower than VTIPX's 1.77% return.

VMSIX

• 1D: 0.11%
• 1M: -0.55%
• 6M: 0.58%
• YTD: 0.90%
• 1Y: 4.50%
• 3Y*: 7.18%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 3.88%

VTIPX

• 1D: 0.00%
• 1M: 0.24%
• 6M: 1.24%
• YTD: 1.77%
• 1Y: 2.98%
• 3Y*: 4.94%
• 5Y*: 2.97%
• 10Y*: 3.00%
• ALL TIME*: 2.13%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
VMSIX Vanguard Multi-Sector Income Bond Inv	$0.00	$0.00	$0.00
VTIPX Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares	$0.00	$0.00	$0.00

VMSIX vs. VTIPX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
VMSIX Vanguard Multi-Sector Income Bond Inv	0.90%	9.09%	6.68%	10.43%	-8.50%
VTIPX Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares	1.77%	5.96%	4.65%	4.51%	-2.43%

Correlation

The correlation between VMSIX and VTIPX is 0.33, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.33
Correlation (3Y) Balances recent behavior with more history.	0.54
Correlation (All Time) Calculated using the full available price history since Feb 1, 2022	0.54

Over the past year, the correlation between VMSIX and VTIPX has dropped to 0.33 - well below their long-term average of 0.54, suggesting their price drivers have been diverging.

Return for Risk

VMSIX vs. VTIPX — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VMSIX

VMSIX Risk / Return Rank: 79
VMSIX Sharpe Ratio Rank: 82
VMSIX Sortino Ratio Rank: 82
VMSIX Omega Ratio Rank: 83
VMSIX Calmar Ratio Rank: 68
VMSIX Martin Ratio Rank: 80

VTIPX

VTIPX Risk / Return Rank: 91
VTIPX Sharpe Ratio Rank: 87
VTIPX Sortino Ratio Rank: 90
VTIPX Omega Ratio Rank: 87
VTIPX Calmar Ratio Rank: 96
VTIPX Martin Ratio Rank: 93

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VMSIX vs. VTIPX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Multi-Sector Income Bond Inv (VMSIX) and Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares (VTIPX). 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.

	VMSIX	VTIPX	Difference
Sharpe ratio: Return per unit of total volatility	1.94	2.12	-0.18
Sortino ratio: Return per unit of downside risk	2.84	3.39	-0.55
Omega ratio: Gain probability vs. loss probability	1.39	1.43	-0.04
Calmar ratio: Return relative to maximum drawdown	2.18	4.57	-2.40
Martin ratio: Return relative to average drawdown	9.62	13.78	-4.17

VMSIX vs. VTIPX - Sharpe Ratio Comparison

The current VMSIX Sharpe Ratio is 1.94, which is comparable to the VTIPX Sharpe Ratio of 2.12. The chart below compares the historical Sharpe Ratios of VMSIX and VTIPX, 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

VMSIX vs. VTIPX - Drawdown Comparison

The maximum VMSIX drawdown since its inception was -13.11%, which is greater than VTIPX's maximum drawdown of -5.36%. Use the drawdown chart below to compare losses from any high point for VMSIX and VTIPX.

Drawdown Indicators

	VMSIX	VTIPX	Difference
Max Drawdown Largest peak-to-trough decline	-13.11%	-5.36%	-7.75%
Max Drawdown (1Y) Largest decline over 1 year	-2.20%	-0.72%	-1.48%
Max Drawdown (3Y) Largest decline over 3 years	-3.44%	-0.95%	-2.49%
Max Drawdown (5Y) Largest decline over 5 years	—	-5.36%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-5.36%	—
Current Drawdown Current decline from peak	-0.66%	-0.26%	-0.40%
Average Drawdown Average peak-to-trough decline	-2.98%	-1.10%	-1.88%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.50%	0.24%	+0.26%

Volatility

VMSIX vs. VTIPX - Volatility Comparison

Vanguard Multi-Sector Income Bond Inv (VMSIX) has a higher volatility of 0.61% compared to Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares (VTIPX) at 0.41%. This indicates that VMSIX's price experiences larger fluctuations and is considered to be riskier than VTIPX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VMSIX	VTIPX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.61%	0.41%	+0.20%
Volatility (6M) Calculated over the trailing 6-month period	2.09%	1.24%	+0.85%
Volatility (1Y) Calculated over the trailing 1-year period	2.49%	1.55%	+0.94%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.63%	2.65%	+1.98%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.63%	2.23%	+2.40%

VMSIX vs. VTIPX - Expense Ratio Comparison

VMSIX has a 0.45% expense ratio, which is higher than VTIPX's 0.14% expense ratio.

Dividends

VMSIX vs. VTIPX - Dividend Comparison

VMSIX's dividend yield for the trailing twelve months is around 4.90%, more than VTIPX's 4.04% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
VMSIX Vanguard Multi-Sector Income Bond Inv	4.90%	5.56%	6.37%	5.43%	3.66%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VTIPX Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares	4.04%	3.70%	2.60%	2.76%	6.74%	4.59%	1.11%	1.88%	2.37%	1.50%	0.55%

Frequently Asked Questions

Can I hold both VMSIX and VTIPX in my portfolio?

VMSIX and VTIPX have a correlation of 0.33, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VMSIX or VTIPX?

VMSIX has higher volatility (0.61%) compared to VTIPX (0.41%). In terms of maximum drawdown, VMSIX dropped -13.11% vs VTIPX's -5.36%.

Which has better risk-adjusted returns?

VTIPX currently has the higher Sharpe Ratio (2.12 vs 1.94), 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.