VTG vs. VTP

Last updated Jun 5, 2026

VTG (Vanguard Total Treasury ETF) and VTP (Vanguard Total 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 VTP is a Inflation-Protected Bonds fund tracking the ICE U.S. Treasury Inflation Linked Bond Index 0-5. Both are passively managed. Their correlation of 0.85 suggests significant overlap in exposure. VTG charges 0.03%/yr vs 0.05%/yr for VTP.

Performance

VTG vs. VTP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Total Treasury ETF (VTG) and Vanguard Total Inflation-Protected Securities ETF (VTP). 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 VTP's 1.51% return.

VTG

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

VTP

• 1D: -0.04%
• 1M: -0.03%
• YTD: 1.51%
• 6M: 1.20%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

VTG vs. VTP - Yearly Performance Comparison

	2026 (YTD)	2025
VTG Vanguard Total Treasury ETF	0.01%	2.88%
VTP Vanguard Total Inflation-Protected Securities ETF	1.51%	2.27%

Correlation

The correlation between VTG and VTP is 0.85, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jul 10, 2025	0.85

Return for Risk

VTG vs. VTP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Treasury ETF (VTG) and Vanguard Total Inflation-Protected Securities ETF (VTP). 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	VTP	Difference
Sharpe Ratio (All Time) Calculated using the full available price history	0.91	1.30	-0.38

Drawdowns

VTG vs. VTP - Drawdown Comparison

The maximum VTG drawdown since its inception was -2.89%, which is greater than VTP's maximum drawdown of -1.92%. Use the drawdown chart below to compare losses from any high point for VTG and VTP.

Drawdown Indicators

	VTG	VTP	Difference
Max Drawdown Largest peak-to-trough decline	-2.89%	-1.92%	-0.97%
Current Drawdown Current decline from peak	-1.78%	-0.34%	-1.44%
Average Drawdown Average peak-to-trough decline	-0.74%	-0.52%	-0.22%

Volatility

Volatility by Period

	VTG	VTP	Difference
Volatility (1Y) Calculated over the trailing 1-year period	3.51%	3.26%	+0.25%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.51%	3.26%	+0.25%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.51%	3.26%	+0.25%

VTG vs. VTP - Expense Ratio Comparison

VTG has a 0.03% expense ratio, which is lower than VTP's 0.05% 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

VTG vs. VTP - Dividend Comparison

VTG's dividend yield for the trailing twelve months is around 3.20%, more than VTP's 1.61% yield.

Position	TTM	2025
VTG Vanguard Total Treasury ETF	3.20%	1.65%
VTP Vanguard Total Inflation-Protected Securities ETF	1.61%	1.56%

Frequently Asked Questions

Can I hold both VTG and VTP in my portfolio?

VTG and VTP have a correlation of 0.85, 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 VTP?

On fees, VTG is cheaper at 0.03% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VTG or VTP?

VTG is cheaper with a 0.03% expense ratio, compared with 0.05% for VTP.

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

VTG has the higher dividend yield at 3.20%, compared with 1.61% for VTP.

What is the main difference between VTG and VTP?

VTG is categorized as Intermediate Core Bond, while VTP is Inflation-Protected Bonds. VTG tracks Bloomberg U.S. Treasury Total Return Unhedged USD Index, while VTP tracks ICE U.S. Treasury Inflation Linked Bond Index 0-5. Their fees differ too: 0.03% for VTG and 0.05% for VTP.