VTIP vs. TIPZ

Last updated Jun 4, 2026

VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) and TIPZ (PIMCO Broad US TIPS Index ETF) are both Inflation-Protected Bonds funds - VTIP tracks the Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index while TIPZ tracks the ICE BofA US Inflation-Linked Treasury. Both are passively managed. Over the past 10 years, VTIP returned 3.14%/yr vs 2.49%/yr for TIPZ. A 0.71 correlation means they provide meaningful diversification when combined. VTIP charges 0.03%/yr vs 0.20%/yr for TIPZ.

Performance

VTIP vs. TIPZ - Performance Comparison

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

Returns By Period

In the year-to-date period, VTIP achieves a 2.05% return, which is significantly lower than TIPZ's 2.58% return. Over the past 10 years, VTIP has outperformed TIPZ with an annualized return of 3.14%, while TIPZ has yielded a comparatively lower 2.49% annualized return.

VTIP

• 1D: 0.00%
• 1M: 0.04%
• YTD: 2.05%
• 6M: 2.03%
• 1Y: 4.70%
• 3Y*: 5.26%
• 5Y*: 3.37%
• 10Y*: 3.14%

TIPZ

• 1D: -0.20%
• 1M: -0.01%
• YTD: 2.58%
• 6M: 1.00%
• 1Y: 5.12%
• 3Y*: 3.86%
• 5Y*: 0.77%
• 10Y*: 2.49%

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

VTIP vs. TIPZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VTIP Vanguard Short-Term Inflation-Protected Securities ETF	2.05%	6.07%	4.74%	4.62%	-2.94%	5.36%	4.95%	4.86%	0.56%	0.82%
TIPZ PIMCO Broad US TIPS Index ETF	2.58%	5.87%	1.52%	3.37%	-12.67%	5.48%	10.98%	8.64%	-1.65%	3.12%

Correlation

The correlation between VTIP and TIPZ is 0.71, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.71
Correlation (3Y) Calculated over the trailing 3-year period	0.80
Correlation (5Y) Calculated over the trailing 5-year period	0.81
Correlation (10Y) Calculated over the trailing 10-year period	0.75
Correlation (All Time) Calculated using the full available price history since Oct 17, 2012	0.71

The correlation between VTIP and TIPZ has been stable across timeframes, ranging from 0.71 to 0.81 - a consistent structural relationship.

Return for Risk

VTIP vs. TIPZ — 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: 90
VTIP Sortino Ratio Rank: 95
VTIP Omega Ratio Rank: 93
VTIP Calmar Ratio Rank: 93
VTIP Martin Ratio Rank: 93

TIPZ

TIPZ Risk / Return Rank: 40
TIPZ Sharpe Ratio Rank: 36
TIPZ Sortino Ratio Rank: 37
TIPZ Omega Ratio Rank: 37
TIPZ Calmar Ratio Rank: 48
TIPZ Martin Ratio Rank: 45

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.

VTIP vs. TIPZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) and PIMCO Broad US TIPS Index ETF (TIPZ). 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.

	VTIP	TIPZ	Difference
Sharpe ratio: Return per unit of total volatility	3.15	1.31	+1.83
Sortino ratio: Return per unit of downside risk	5.36	1.93	+3.42
Omega ratio: Gain probability vs. loss probability	1.67	1.24	+0.43
Calmar ratio: Return relative to maximum drawdown	6.75	2.36	+4.38
Martin ratio: Return relative to average drawdown	26.06	7.37	+18.69
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VTIP vs. TIPZ - Sharpe Ratio Comparison

The current VTIP Sharpe Ratio is 3.15, which is higher than the TIPZ Sharpe Ratio of 1.31. The chart below compares the historical Sharpe Ratios of VTIP and TIPZ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VTIP	TIPZ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.15	1.31	+1.83
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.22	0.12	+1.10
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.15	0.43	+0.72
Sharpe Ratio (All Time) Calculated using the full available price history	0.89	0.53	+0.37

Drawdowns

VTIP vs. TIPZ - Drawdown Comparison

The maximum VTIP drawdown since its inception was -6.27%, smaller than the maximum TIPZ drawdown of -15.77%. Use the drawdown chart below to compare losses from any high point for VTIP and TIPZ.

Drawdown Indicators

	VTIP	TIPZ	Difference
Max Drawdown Largest peak-to-trough decline	-6.27%	-15.77%	+9.50%
Max Drawdown (1Y) Largest decline over 1 year	-0.70%	-2.18%	+1.48%
Max Drawdown (3Y) Largest decline over 3 years	-0.98%	-4.74%	+3.76%
Max Drawdown (5Y) Largest decline over 5 years	-5.50%	-15.77%	+10.27%
Max Drawdown (10Y) Largest decline over 10 years	-6.27%	-15.77%	+9.50%
Current Drawdown Current decline from peak	-0.02%	-1.44%	+1.42%
Average Drawdown Average peak-to-trough decline	-1.04%	-4.33%	+3.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.18%	0.70%	-0.52%

Volatility

VTIP vs. TIPZ - Volatility Comparison

The current volatility for Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is 0.43%, while PIMCO Broad US TIPS Index ETF (TIPZ) has a volatility of 0.96%. This indicates that VTIP experiences smaller price fluctuations and is considered to be less risky than TIPZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTIP	TIPZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.43%	0.96%	-0.53%
Volatility (6M) Calculated over the trailing 6-month period	1.02%	2.88%	-1.86%
Volatility (1Y) Calculated over the trailing 1-year period	1.50%	3.92%	-2.42%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.77%	6.37%	-3.60%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.74%	5.84%	-3.10%

VTIP vs. TIPZ - Expense Ratio Comparison

VTIP has a 0.03% expense ratio, which is lower than TIPZ's 0.20% 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

VTIP vs. TIPZ - Dividend Comparison

VTIP's dividend yield for the trailing twelve months is around 3.58%, less than TIPZ's 5.11% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TIPZ PIMCO Broad US TIPS Index ETF	5.11%	4.74%	4.44%	4.69%	7.14%	4.41%	1.47%	1.65%	2.23%	1.70%	1.06%	0.56%
VTIP Vanguard Short-Term Inflation-Protected Securities ETF	3.58%	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

Can I hold both VTIP and TIPZ in my portfolio?

VTIP and TIPZ have a correlation of 0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VTIP or TIPZ?

TIPZ has higher volatility (0.96%) compared to VTIP (0.43%). In terms of maximum drawdown, VTIP dropped -6.27% vs TIPZ's -15.77%.

Which ETF is better, VTIP or TIPZ?

On 10-year performance, VTIP leads with 3.14% vs 2.49% for TIPZ. On fees, VTIP is cheaper at 0.03% per year. On volatility, VTIP has been the lower-risk option at 0.43%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VTIP or TIPZ?

Over the 10-year period, VTIP has performed better with a 3.14% return vs 2.49%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VTIP or TIPZ?

VTIP is cheaper with a 0.03% expense ratio, compared with 0.20% for TIPZ.

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

TIPZ has the higher dividend yield at 5.11%, compared with 3.58% for VTIP.

What is the main difference between VTIP and TIPZ?

VTIP tracks Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index, while TIPZ tracks ICE BofA US Inflation-Linked Treasury. They also come from different issuers: Vanguard and PIMCO. Their fees differ too: 0.03% for VTIP and 0.20% for TIPZ.

Which has better risk-adjusted returns?

VTIP currently has the higher Sharpe Ratio (3.15 vs 1.31), 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.