VSS vs. VTIP
VSS (Vanguard FTSE All-World ex-US Small-Cap ETF) and VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) are both exchange-traded funds - VSS is a Foreign Small & Mid Cap Equities fund tracking the FTSE Global Small Cap ex US Index, while VTIP is a Inflation-Protected Bonds fund tracking the Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index. Both are passively managed. Over the past 10 years, VSS returned 8.49%/yr vs 3.09%/yr for VTIP. At a 0.16 correlation, their price movements are largely independent. VSS charges 0.07%/yr vs 0.03%/yr for VTIP.
Performance
VSS vs. VTIP - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, VSS achieves a 10.04% return, which is significantly higher than VTIP's 1.85% return. Over the past 10 years, VSS has outperformed VTIP with an annualized return of 8.49%, while VTIP has yielded a comparatively lower 3.09% annualized return.
VSS
- 1D
- 0.50%
- 1M
- -2.16%
- YTD
- 10.04%
- 6M
- 12.05%
- 1Y
- 24.95%
- 3Y*
- 15.73%
- 5Y*
- 5.58%
- 10Y*
- 8.49%
VTIP
- 1D
- -0.04%
- 1M
- -0.12%
- YTD
- 1.85%
- 6M
- 1.95%
- 1Y
- 4.51%
- 3Y*
- 5.25%
- 5Y*
- 3.37%
- 10Y*
- 3.09%
VSS vs. VTIP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VSS Vanguard FTSE All-World ex-US Small-Cap ETF | 10.04% | 29.61% | 2.94% | 15.52% | -21.48% | 13.05% | 11.81% | 21.36% | -18.48% | 30.61% |
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 1.85% | 6.07% | 4.74% | 4.62% | -2.94% | 5.36% | 4.95% | 4.86% | 0.56% | 0.82% |
Correlation
The correlation between VSS and VTIP is 0.07, 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 | 0.07 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.21 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.22 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.19 |
Correlation (All Time) Calculated using the full available price history since Oct 16, 2012 | 0.16 |
The correlation between VSS and VTIP shifts across timeframes, from 0.07 (1 year) to 0.22 (5 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.
Return for Risk
VSS vs. VTIP — Risk / Return Rank
VSS
VTIP
VSS vs. VTIP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP). 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.
| VSS | VTIP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.56 | ||
| Sortino ratioReturn per unit of downside risk | -3.14 | ||
| Omega ratioGain probability vs. loss probability | 1.28 | 1.65 | -0.37 |
| Calmar ratioReturn relative to maximum drawdown | 2.03 | 6.57 | -4.54 |
| Martin ratioReturn relative to average drawdown | 7.61 | 25.36 | -17.75 |
Loading charts...
Drawdowns
VSS vs. VTIP - Drawdown Comparison
The maximum VSS drawdown since its inception was -43.51%, which is greater than VTIP's maximum drawdown of -6.27%. Use the drawdown chart below to compare losses from any high point for VSS and VTIP.
Loading charts...
Drawdown Indicators
| VSS | VTIP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -43.51% | -6.27% | -37.24% |
Max Drawdown (1Y)Largest decline over 1 year | -11.62% | -0.70% | -10.92% |
Max Drawdown (3Y)Largest decline over 3 years | -15.73% | -0.98% | -14.75% |
Max Drawdown (5Y)Largest decline over 5 years | -33.93% | -5.50% | -28.43% |
Max Drawdown (10Y)Largest decline over 10 years | -43.51% | -6.27% | -37.24% |
Current DrawdownCurrent decline from peak | -3.05% | -0.22% | -2.83% |
Average DrawdownAverage peak-to-trough decline | -9.63% | -1.04% | -8.59% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.09% | 0.18% | +2.91% |
Volatility
VSS vs. VTIP - Volatility Comparison
Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) has a higher volatility of 6.52% compared to Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) at 0.40%. This indicates that VSS's price experiences larger fluctuations and is considered to be riskier than VTIP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| VSS | VTIP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.52% | 0.40% | +6.12% |
Volatility (6M)Calculated over the trailing 6-month period | 13.55% | 1.04% | +12.51% |
Volatility (1Y)Calculated over the trailing 1-year period | 15.60% | 1.50% | +14.10% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 16.59% | 2.77% | +13.82% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 17.30% | 2.74% | +14.56% |
VSS vs. VTIP - Expense Ratio Comparison
VSS has a 0.07% expense ratio, which is higher than VTIP's 0.03% 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
VSS vs. VTIP - Dividend Comparison
VSS's dividend yield for the trailing twelve months is around 3.08%, less than VTIP's 3.59% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VSS Vanguard FTSE All-World ex-US Small-Cap ETF | 3.08% | 3.39% | 3.44% | 3.14% | 2.30% | 2.74% | 1.90% | 3.25% | 2.80% | 2.83% | 2.93% | 2.66% |
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 3.59% | 3.81% | 2.70% | 2.86% | 6.84% | 4.68% | 1.20% | 1.95% | 2.45% | 1.52% | 0.76% | 0.00% |
Frequently Asked Questions
VSS and VTIP have a correlation of 0.07, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VSS has higher volatility (6.52%) compared to VTIP (0.40%). In terms of maximum drawdown, VSS dropped -43.51% vs VTIP's -6.27%.
On 10-year performance, VSS leads with 8.49% vs 3.09% for VTIP. On fees, VTIP is cheaper at 0.03% per year. On volatility, VTIP has been the lower-risk option at 0.40%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VSS has performed better with a 8.49% return vs 3.09%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VTIP is cheaper with a 0.03% expense ratio, compared with 0.07% for VSS.
VTIP has the higher dividend yield at 3.59%, compared with 3.08% for VSS.
VSS is categorized as Foreign Small & Mid Cap Equities, while VTIP is Inflation-Protected Bonds. VSS tracks FTSE Global Small Cap ex US Index, while VTIP tracks Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index. Their fees differ too: 0.07% for VSS and 0.03% for VTIP.
VTIP currently has the higher Sharpe Ratio (3.07 vs 1.51), 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.
Find the right allocation for VSS and VTIP
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer