VTIP vs. VO
VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) and VO (Vanguard Mid-Cap 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 VO is a Mid Cap Blend Equities fund tracking the CRSP US Mid Cap Index. Both are passively managed. Over the past 10 years, VTIP returned 3.09%/yr vs 11.77%/yr for VO. At a 0.09 correlation, their price movements are largely independent. Both charge a 0.03% expense ratio.
Performance
VTIP vs. VO - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, VTIP achieves a 1.85% return, which is significantly lower than VO's 10.43% return. Over the past 10 years, VTIP has underperformed VO with an annualized return of 3.09%, while VO has yielded a comparatively higher 11.77% annualized return.
VTIP
- 1D
- -0.04%
- 1M
- -0.06%
- YTD
- 1.85%
- 6M
- 1.95%
- 1Y
- 4.51%
- 3Y*
- 5.25%
- 5Y*
- 3.37%
- 10Y*
- 3.09%
VO
- 1D
- 0.97%
- 1M
- 4.30%
- YTD
- 10.43%
- 6M
- 9.31%
- 1Y
- 19.60%
- 3Y*
- 15.74%
- 5Y*
- 7.79%
- 10Y*
- 11.77%
VTIP vs. VO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
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% |
VO Vanguard Mid-Cap ETF | 10.43% | 11.62% | 15.31% | 16.03% | -18.73% | 24.70% | 18.10% | 30.98% | -9.24% | 19.28% |
Correlation
The correlation between VTIP and VO is 0.05, 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 | 0.05 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.14 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.17 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.11 |
Correlation (All Time) Calculated using the full available price history since Oct 16, 2012 | 0.09 |
The correlation between VTIP and VO shifts across timeframes, from 0.05 (1 year) to 0.17 (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
VTIP vs. VO — Risk / Return Rank
VTIP
VO
VTIP vs. VO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) and Vanguard Mid-Cap ETF (VO). 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.
| VTIP | VO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.64 | ||
| Sortino ratioReturn per unit of downside risk | +3.18 | ||
| Omega ratioGain probability vs. loss probability | 1.65 | 1.25 | +0.40 |
| Calmar ratioReturn relative to maximum drawdown | 6.57 | 2.23 | +4.33 |
| Martin ratioReturn relative to average drawdown | 25.36 | 8.44 | +16.93 |
Loading charts...
Drawdowns
VTIP vs. VO - Drawdown Comparison
The maximum VTIP drawdown since its inception was -6.27%, smaller than the maximum VO drawdown of -58.87%. Use the drawdown chart below to compare losses from any high point for VTIP and VO.
Loading charts...
Drawdown Indicators
| VTIP | VO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -6.27% | -58.87% | +52.60% |
Max Drawdown (1Y)Largest decline over 1 year | -0.70% | -8.17% | +7.47% |
Max Drawdown (3Y)Largest decline over 3 years | -0.98% | -19.02% | +18.04% |
Max Drawdown (5Y)Largest decline over 5 years | -5.50% | -27.57% | +22.07% |
Max Drawdown (10Y)Largest decline over 10 years | -6.27% | -39.37% | +33.10% |
Current DrawdownCurrent decline from peak | -0.22% | -0.45% | +0.23% |
Average DrawdownAverage peak-to-trough decline | -1.04% | -7.85% | +6.81% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.18% | 2.16% | -1.98% |
Volatility
VTIP vs. VO - Volatility Comparison
The current volatility for Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is 0.40%, while Vanguard Mid-Cap ETF (VO) has a volatility of 4.31%. This indicates that VTIP experiences smaller price fluctuations and is considered to be less risky than VO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| VTIP | VO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.40% | 4.31% | -3.91% |
Volatility (6M)Calculated over the trailing 6-month period | 1.04% | 9.71% | -8.67% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.50% | 12.74% | -11.24% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.77% | 17.65% | -14.88% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.74% | 18.96% | -16.22% |
VTIP vs. VO - Expense Ratio Comparison
Both VTIP and VO 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
VTIP vs. VO - Dividend Comparison
VTIP's dividend yield for the trailing twelve months is around 3.59%, more than VO's 1.36% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VO Vanguard Mid-Cap ETF | 1.36% | 1.52% | 1.49% | 1.52% | 1.60% | 1.12% | 1.45% | 1.48% | 1.82% | 1.35% | 1.45% | 1.47% |
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 VO have a correlation of 0.05, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VO has higher volatility (4.31%) compared to VTIP (0.40%). In terms of maximum drawdown, VTIP dropped -6.27% vs VO's -58.87%.
On 10-year performance, VO leads with 11.77% vs 3.09% for VTIP. Both ETFs have the same 0.03% expense ratio. 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, VO has performed better with a 11.77% return vs 3.09%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VTIP and VO have the same expense ratio: 0.03% per year.
VTIP has the higher dividend yield at 3.59%, compared with 1.36% for VO.
VTIP is categorized as Inflation-Protected Bonds, while VO is Mid Cap Blend Equities. VTIP tracks Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index, while VO tracks CRSP US Mid Cap Index.
VTIP currently has the higher Sharpe Ratio (3.07 vs 1.43), 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 VTIP and VO
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