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VTIP vs. USMV
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VTIP vs. USMV

Last updated Jun 9, 2026

VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) and USMV (iShares MSCI USA Min Vol Factor ETF) are both exchange-traded funds - VTIP is a Inflation-Protected Bonds fund tracking the Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index, while USMV is a Large Cap Blend Equities fund tracking the MSCI USA Minimum Volatility Index. Both are passively managed. Over the past 10 years, VTIP returned 3.08%/yr vs 9.75%/yr for USMV. At a 0.11 correlation, their price movements are largely independent. VTIP charges 0.03%/yr vs 0.15%/yr for USMV.

Performance

VTIP vs. USMV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) and iShares MSCI USA Min Vol Factor ETF (USMV). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, VTIP achieves a 1.76% return, which is significantly higher than USMV's 1.55% return. Over the past 10 years, VTIP has underperformed USMV with an annualized return of 3.08%, while USMV has yielded a comparatively higher 9.75% annualized return.

VTIP

1D
0.00%
1M
-0.18%
YTD
1.76%
6M
1.89%
1Y
4.64%
3Y*
5.17%
5Y*
3.37%
10Y*
3.08%

USMV

1D
-0.43%
1M
1.28%
YTD
1.55%
6M
2.27%
1Y
3.18%
3Y*
11.35%
5Y*
7.21%
10Y*
9.75%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VTIP vs. USMV - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VTIP
Vanguard Short-Term Inflation-Protected Securities ETF		1.76%6.07%4.74%4.62%-2.94%5.36%4.95%4.86%0.56%0.82%
USMV
iShares MSCI USA Min Vol Factor ETF		1.55%7.65%15.74%10.33%-9.43%20.85%5.64%27.69%1.33%18.91%

Correlation

The correlation between VTIP and USMV is 0.11, which is low. Their price movements are largely independent, making them effective diversification partners.

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

0.11

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

0.16

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

0.20

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

0.15

Correlation (All Time)
Calculated using the full available price history since Oct 17, 2012

0.11

Compare stocks, funds, or ETFs

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

Vanguard Short-Term Inflation-Protected Securities ETF

iShares MSCI USA Min Vol Factor ETF

Often compared with VTIP:
VTIP vs. SCHPVTIP vs. TIPVTIP vs. VGSHVTIP vs. STIPVTIP vs. BNDVTIP vs. VGITVTIP vs. VTAPX
Often compared with USMV:
USMV vs. SPLVUSMV vs. SPYUSMV vs. VOOUSMV vs. VFMVUSMV vs. ACWVUSMV vs. QUALUSMV vs. VTI

Return for Risk

VTIP vs. USMV — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VTIP
VTIP Risk / Return Rank: 9595
Overall Rank
VTIP Sharpe Ratio Rank: 9393
Sharpe Ratio Rank
VTIP Sortino Ratio Rank: 9696
Sortino Ratio Rank
VTIP Omega Ratio Rank: 9595
Omega Ratio Rank
VTIP Calmar Ratio Rank: 9494
Calmar Ratio Rank
VTIP Martin Ratio Rank: 9494
Martin Ratio Rank
USMV
USMV Risk / Return Rank: 1515
Overall Rank
USMV Sharpe Ratio Rank: 1515
Sharpe Ratio Rank
USMV Sortino Ratio Rank: 1515
Sortino Ratio Rank
USMV Omega Ratio Rank: 1414
Omega Ratio Rank
USMV Calmar Ratio Rank: 1616
Calmar Ratio Rank
USMV Martin Ratio Rank: 1717
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.

VTIP vs. USMV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) and iShares MSCI USA Min Vol Factor ETF (USMV). 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.

VTIPUSMVDifference
Sharpe ratioReturn per unit of total volatility
3.12
0.37

+2.74

Sortino ratioReturn per unit of downside risk
5.31
0.58

+4.73

Omega ratioGain probability vs. loss probability

1.66

1.07

+0.60

Calmar ratioReturn relative to maximum drawdown

6.66

0.49

+6.17

Martin ratioReturn relative to average drawdown

26.11

1.64

+24.47

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. USMV - Sharpe Ratio Comparison

The current VTIP Sharpe Ratio is 3.12, which is higher than the USMV Sharpe Ratio of 0.37. The chart below compares the historical Sharpe Ratios of VTIP and USMV, 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

VTIPUSMVDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

3.12

0.37

+2.74

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

1.22

0.59

+0.63

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

1.13

0.67

+0.45

Sharpe Ratio (All Time)

Calculated using the full available price history

0.89

0.86

+0.03

Drawdowns

VTIP vs. USMV - Drawdown Comparison

The maximum VTIP drawdown since its inception was -6.27%, smaller than the maximum USMV drawdown of -33.10%. Use the drawdown chart below to compare losses from any high point for VTIP and USMV.

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Drawdown Indicators

VTIPUSMVDifference

Max Drawdown

Largest peak-to-trough decline

-6.27%

-33.10%

+26.83%

Max Drawdown (1Y)

Largest decline over 1 year

-0.70%

-6.46%

+5.76%

Max Drawdown (3Y)

Largest decline over 3 years

-0.98%

-9.36%

+8.38%

Max Drawdown (5Y)

Largest decline over 5 years

-5.50%

-17.93%

+12.43%

Max Drawdown (10Y)

Largest decline over 10 years

-6.27%

-33.10%

+26.83%

Current Drawdown

Current decline from peak

-0.30%

-2.24%

+1.94%

Average Drawdown

Average peak-to-trough decline

-1.04%

-2.88%

+1.84%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.18%

1.94%

-1.76%

Volatility

VTIP vs. USMV - Volatility Comparison

The current volatility for Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is 0.45%, while iShares MSCI USA Min Vol Factor ETF (USMV) has a volatility of 2.65%. This indicates that VTIP experiences smaller price fluctuations and is considered to be less risky than USMV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

VTIPUSMVDifference

Volatility (1M)

Calculated over the trailing 1-month period

0.45%

2.65%

-2.20%

Volatility (6M)

Calculated over the trailing 6-month period

1.05%

6.02%

-4.97%

Volatility (1Y)

Calculated over the trailing 1-year period

1.50%

8.57%

-7.07%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

2.78%

12.36%

-9.58%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

2.74%

14.51%

-11.77%

VTIP vs. USMV - Expense Ratio Comparison

VTIP has a 0.03% expense ratio, which is lower than USMV's 0.15% 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. USMV - Dividend Comparison

VTIP's dividend yield for the trailing twelve months is around 3.59%, more than USMV's 1.54% yield.

PositionTTM20252024202320222021202020192018201720162015
USMV
iShares MSCI USA Min Vol Factor ETF		1.54%1.49%1.67%1.82%1.62%1.26%1.81%1.88%2.12%1.77%2.22%2.02%
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

VTIP and USMV have a correlation of 0.11, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

USMV has higher volatility (2.65%) compared to VTIP (0.45%). In terms of maximum drawdown, VTIP dropped -6.27% vs USMV's -33.10%.

On 10-year performance, USMV leads with 9.75% vs 3.08% for VTIP. On fees, VTIP is cheaper at 0.03% per year. On volatility, VTIP has been the lower-risk option at 0.45%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, USMV has performed better with a 9.75% return vs 3.08%. 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 0.15% for USMV.

VTIP has the higher dividend yield at 3.59%, compared with 1.54% for USMV.

VTIP is categorized as Inflation-Protected Bonds, while USMV is Large Cap Blend Equities. VTIP tracks Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index, while USMV tracks MSCI USA Minimum Volatility Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.03% for VTIP and 0.15% for USMV.

VTIP currently has the higher Sharpe Ratio (3.12 vs 0.37), 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.

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