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VOO vs. TIP
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VOO vs. TIP

Last updated Jun 4, 2026

VOO (Vanguard S&P 500 ETF) and TIP (iShares TIPS Bond ETF) are both exchange-traded funds - VOO is a S&P 500 fund tracking the S&P 500 Index, while TIP is a Inflation-Protected Bonds fund tracking the Barclays Capital U.S. Treasury Inflation Protected Securities (TIPS) Index (Series-L). Both are passively managed. Over the past 10 years, VOO returned 15.56%/yr vs 2.57%/yr for TIP. At a correlation of -0.05, they often move in opposite directions. VOO charges 0.03%/yr vs 0.19%/yr for TIP.

Performance

VOO vs. TIP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard S&P 500 ETF (VOO) and iShares TIPS Bond ETF (TIP). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, VOO achieves a 10.91% return, which is significantly higher than TIP's 1.54% return. Over the past 10 years, VOO has outperformed TIP with an annualized return of 15.56%, while TIP has yielded a comparatively lower 2.57% annualized return.

VOO

1D
-0.70%
1M
5.04%
YTD
10.91%
6M
10.93%
1Y
28.04%
3Y*
22.44%
5Y*
13.90%
10Y*
15.56%

TIP

1D
-0.18%
1M
-0.09%
YTD
1.54%
6M
1.06%
1Y
4.96%
3Y*
3.88%
5Y*
0.97%
10Y*
2.57%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VOO vs. TIP - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VOO
Vanguard S&P 500 ETF		10.91%17.82%24.98%26.32%-18.17%28.79%18.32%31.37%-4.50%21.77%
TIP
iShares TIPS Bond ETF		1.54%6.77%1.65%3.80%-12.26%5.68%10.84%8.35%-1.42%2.92%

Correlation

The correlation between VOO and TIP is 0.21, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.21

Correlation (3Y)
Calculated over the trailing 3-year period

0.21

Correlation (5Y)
Calculated over the trailing 5-year period

0.18

Correlation (10Y)
Calculated over the trailing 10-year period

0.07

Correlation (All Time)
Calculated using the full available price history since Sep 10, 2010

-0.05

The correlation between VOO and TIP shifts across timeframes, from -0.05 (all time) to 0.21 (3 years), reflecting how their relationship changes across market environments.

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Vanguard S&P 500 ETF

iShares TIPS Bond ETF

Often compared with VOO:
VOO vs. VTIVOO vs. QQQVOO vs. SCHDVOO vs. VTVOO vs. SPYVOO vs. FXAIXVOO vs. IVV
Often compared with TIP:
TIP vs. SCHPTIP vs. VTIPTIP vs. SGOVTIP vs. STIPTIP vs. FIPDXTIP vs. BNDTIP vs. IEF

Return for Risk

VOO vs. TIP — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VOO
VOO Risk / Return Rank: 7070
Overall Rank
VOO Sharpe Ratio Rank: 7171
Sharpe Ratio Rank
VOO Sortino Ratio Rank: 7070
Sortino Ratio Rank
VOO Omega Ratio Rank: 7070
Omega Ratio Rank
VOO Calmar Ratio Rank: 6262
Calmar Ratio Rank
VOO Martin Ratio Rank: 7575
Martin Ratio Rank
TIP
TIP Risk / Return Rank: 4444
Overall Rank
TIP Sharpe Ratio Rank: 4040
Sharpe Ratio Rank
TIP Sortino Ratio Rank: 4444
Sortino Ratio Rank
TIP Omega Ratio Rank: 3939
Omega Ratio Rank
TIP Calmar Ratio Rank: 5050
Calmar Ratio Rank
TIP Martin Ratio Rank: 4545
Martin Ratio Rank
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.

VOO vs. TIP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard S&P 500 ETF (VOO) 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.

VOOTIPDifference

Sharpe ratio

Return per unit of total volatility

2.39

1.46

+0.93

Sortino ratio

Return per unit of downside risk

3.25

2.24

+1.01

Omega ratio

Gain probability vs. loss probability

1.43

1.26

+0.17

Calmar ratio

Return relative to maximum drawdown

3.16

2.52

+0.64

Martin ratio

Return relative to average drawdown

14.73

7.57

+7.15

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VOO vs. TIP - Sharpe Ratio Comparison

The current VOO Sharpe Ratio is 2.39, which is higher than the TIP Sharpe Ratio of 1.46. The chart below compares the historical Sharpe Ratios of VOO 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.

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Sharpe Ratios by Period

VOOTIPDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.39

1.46

+0.93

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.83

0.16

+0.67

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.87

0.45

+0.42

Sharpe Ratio (All Time)

Calculated using the full available price history

0.89

0.57

+0.31

Drawdowns

VOO vs. TIP - Drawdown Comparison

The maximum VOO drawdown since its inception was -33.99%, which is greater than TIP's maximum drawdown of -14.57%. Use the drawdown chart below to compare losses from any high point for VOO and TIP.

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Drawdown Indicators

VOOTIPDifference

Max Drawdown

Largest peak-to-trough decline

-33.99%

-14.57%

-19.42%

Max Drawdown (1Y)

Largest decline over 1 year

-8.90%

-1.98%

-6.92%

Max Drawdown (3Y)

Largest decline over 3 years

-18.69%

-4.54%

-14.15%

Max Drawdown (5Y)

Largest decline over 5 years

-24.52%

-14.51%

-10.01%

Max Drawdown (10Y)

Largest decline over 10 years

-33.99%

-14.51%

-19.48%

Current Drawdown

Current decline from peak

-0.70%

-0.32%

-0.38%

Average Drawdown

Average peak-to-trough decline

-3.69%

-3.43%

-0.26%

Ulcer Index

Depth and duration of drawdowns from previous peaks

1.91%

0.66%

+1.25%

Volatility

VOO vs. TIP - Volatility Comparison

Vanguard S&P 500 ETF (VOO) has a higher volatility of 2.84% compared to iShares TIPS Bond ETF (TIP) at 0.89%. This indicates that VOO'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

VOOTIPDifference

Volatility (1M)

Calculated over the trailing 1-month period

2.84%

0.89%

+1.95%

Volatility (6M)

Calculated over the trailing 6-month period

8.90%

2.29%

+6.61%

Volatility (1Y)

Calculated over the trailing 1-year period

11.80%

3.41%

+8.39%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

16.81%

6.21%

+10.60%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

18.01%

5.74%

+12.27%

VOO vs. TIP - Expense Ratio Comparison

VOO has a 0.03% expense ratio, which is lower than TIP's 0.19% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VOO vs. TIP - Dividend Comparison

VOO's dividend yield for the trailing twelve months is around 1.03%, less than TIP's 3.76% yield.

PositionTTM20252024202320222021202020192018201720162015
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%
VOO
Vanguard S&P 500 ETF		1.03%1.13%1.24%1.46%1.69%1.25%1.54%1.88%2.06%1.78%2.02%2.10%

Frequently Asked Questions

VOO and TIP have a correlation of 0.21, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VOO has higher volatility (2.84%) compared to TIP (0.89%). In terms of maximum drawdown, VOO dropped -33.99% vs TIP's -14.57%.

On 10-year performance, VOO leads with 15.56% vs 2.57% for TIP. On fees, VOO is cheaper at 0.03% per year. On volatility, TIP has been the lower-risk option at 0.89%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, VOO has performed better with a 15.56% return vs 2.57%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VOO is cheaper with a 0.03% expense ratio, compared with 0.19% for TIP.

TIP has the higher dividend yield at 3.76%, compared with 1.03% for VOO.

VOO is categorized as S&P 500, while TIP is Inflation-Protected Bonds. VOO tracks S&P 500 Index, while TIP tracks Barclays Capital U.S. Treasury Inflation Protected Securities (TIPS) Index (Series-L). They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.03% for VOO and 0.19% for TIP.

VOO currently has the higher Sharpe Ratio (2.39 vs 1.46), 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.

Portfolio Optimizer

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