VTG vs. VTIP

Last updated Jun 5, 2026

VTG (Vanguard Total Treasury ETF) and VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) are both exchange-traded funds - VTG is a Intermediate Core Bond fund tracking the Bloomberg U.S. Treasury Total Return Unhedged USD 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. A 0.52 correlation means they provide meaningful diversification when combined. Both charge a 0.03% expense ratio.

Performance

VTG vs. VTIP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Total Treasury ETF (VTG) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTG achieves a 0.01% return, which is significantly lower than VTIP's 1.97% return.

VTG

• 1D: 0.11%
• 1M: 0.10%
• YTD: 0.01%
• 6M: 0.06%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

VTIP

• 1D: -0.08%
• 1M: 0.10%
• YTD: 1.97%
• 6M: 1.99%
• 1Y: 4.51%
• 3Y*: 5.18%
• 5Y*: 3.35%
• 10Y*: 3.13%

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

VTG vs. VTIP - Yearly Performance Comparison

	2026 (YTD)	2025
VTG Vanguard Total Treasury ETF	0.01%	2.88%
VTIP Vanguard Short-Term Inflation-Protected Securities ETF	1.97%	1.89%

Correlation

The correlation between VTG and VTIP is 0.52, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jul 10, 2025	0.52

Return for Risk

VTG vs. VTIP — Risk / Return Rank

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

VTIP

VTIP Risk / Return Rank: 93
VTIP Sharpe Ratio Rank: 89
VTIP Sortino Ratio Rank: 95
VTIP Omega Ratio Rank: 93
VTIP Calmar Ratio Rank: 93
VTIP Martin Ratio Rank: 93

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.

VTG vs. VTIP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Treasury ETF (VTG) 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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	VTG	VTIP	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	3.02	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	1.21	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	1.15	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.91	0.89	+0.02

Drawdowns

VTG vs. VTIP - Drawdown Comparison

The maximum VTG drawdown since its inception was -2.89%, smaller than the maximum VTIP drawdown of -6.27%. Use the drawdown chart below to compare losses from any high point for VTG and VTIP.

Drawdown Indicators

	VTG	VTIP	Difference
Max Drawdown Largest peak-to-trough decline	-2.89%	-6.27%	+3.38%
Max Drawdown (1Y) Largest decline over 1 year	—	-0.70%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-0.98%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-5.50%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-6.27%	—
Current Drawdown Current decline from peak	-1.78%	-0.10%	-1.68%
Average Drawdown Average peak-to-trough decline	-0.74%	-1.04%	+0.30%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.18%	—

Volatility

Volatility by Period

	VTG	VTIP	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	0.42%	—
Volatility (6M) Calculated over the trailing 6-month period	—	1.03%	—
Volatility (1Y) Calculated over the trailing 1-year period	3.51%	1.50%	+2.01%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.51%	2.77%	+0.74%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.51%	2.74%	+0.77%

VTG vs. VTIP - Expense Ratio Comparison

Both VTG and VTIP have an expense ratio of 0.03%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VTG vs. VTIP - Dividend Comparison

VTG's dividend yield for the trailing twelve months is around 3.20%, less than VTIP's 3.59% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
VTG Vanguard Total Treasury ETF	3.20%	1.65%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
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%

Frequently Asked Questions

Can I hold both VTG and VTIP in my portfolio?

VTG and VTIP have a correlation of 0.52, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VTG or VTIP?

Both ETFs have the same 0.03% expense ratio. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VTG or VTIP?

VTG and VTIP have the same expense ratio: 0.03% per year.

Which ETF pays a higher dividend yield, VTG or VTIP?

VTIP has the higher dividend yield at 3.59%, compared with 3.20% for VTG.

What is the main difference between VTG and VTIP?

VTG is categorized as Intermediate Core Bond, while VTIP is Inflation-Protected Bonds. VTG tracks Bloomberg U.S. Treasury Total Return Unhedged USD Index, while VTIP tracks Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index.