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VTIP vs. VOO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VTIP vs. VOO

Last updated Jun 4, 2026

VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) and VOO (Vanguard S&P 500 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 VOO is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, VTIP returned 3.14%/yr vs 15.56%/yr for VOO. At a 0.07 correlation, their price movements are largely independent. Both charge a 0.03% expense ratio.

Performance

VTIP vs. VOO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) and Vanguard S&P 500 ETF (VOO). 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 2.05% return, which is significantly lower than VOO's 10.91% return. Over the past 10 years, VTIP has underperformed VOO with an annualized return of 3.14%, while VOO has yielded a comparatively higher 15.56% 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%

VOO

1D
-0.70%
1M
5.04%
YTD
10.91%
6M
10.93%
1Y
28.04%
3Y*
22.44%
5Y*
13.90%
10Y*
15.56%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VTIP vs. VOO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
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%
VOO
Vanguard S&P 500 ETF		10.91%17.82%24.98%26.32%-18.17%28.79%18.32%31.37%-4.50%21.77%

Correlation

The correlation between VTIP and VOO is -0.03, 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

-0.03

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

0.09

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

0.15

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

0.10

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

0.07

The correlation between VTIP and VOO shifts across timeframes, from -0.03 (1 year) to 0.15 (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.

Vanguard Short-Term Inflation-Protected Securities ETF

Vanguard S&P 500 ETF

Often compared with VTIP:
VTIP vs. SCHPVTIP vs. TIPVTIP vs. VGSHVTIP vs. STIPVTIP vs. VGITVTIP vs. BNDVTIP vs. VTAPX
Often compared with VOO:
VOO vs. VTIVOO vs. QQQVOO vs. SCHDVOO vs. VTVOO vs. SPYVOO vs. FXAIXVOO vs. IVV

Return for Risk

VTIP vs. VOO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VTIP
VTIP Risk / Return Rank: 9393
Overall Rank
VTIP Sharpe Ratio Rank: 9090
Sharpe Ratio Rank
VTIP Sortino Ratio Rank: 9595
Sortino Ratio Rank
VTIP Omega Ratio Rank: 9393
Omega Ratio Rank
VTIP Calmar Ratio Rank: 9393
Calmar Ratio Rank
VTIP Martin Ratio Rank: 9393
Martin Ratio Rank
VOO
VOO Risk / Return Rank: 7070
Overall Rank
VOO Sharpe Ratio Rank: 7171
Sharpe Ratio Rank
VOO Sortino Ratio Rank: 7070
Sortino Ratio Rank
VOO Omega Ratio Rank: 7070
Omega Ratio Rank
VOO Calmar Ratio Rank: 6262
Calmar Ratio Rank
VOO Martin Ratio Rank: 7575
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. VOO - 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 S&P 500 ETF (VOO). 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.

VTIPVOODifference
Sharpe ratioReturn per unit of total volatility
3.15
2.39

+0.76

Sortino ratioReturn per unit of downside risk
5.36
3.25

+2.10

Omega ratioGain probability vs. loss probability

1.67

1.43

+0.23

Calmar ratioReturn relative to maximum drawdown

6.75

3.16

+3.58

Martin ratioReturn relative to average drawdown

26.06

14.73

+11.34

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. VOO - Sharpe Ratio Comparison

The current VTIP Sharpe Ratio is 3.15, which is higher than the VOO Sharpe Ratio of 2.39. The chart below compares the historical Sharpe Ratios of VTIP and VOO, 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

VTIPVOODifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

3.15

2.39

+0.76

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

1.22

0.83

+0.39

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

1.15

0.87

+0.28

Sharpe Ratio (All Time)

Calculated using the full available price history

0.89

0.89

+0.01

Drawdowns

VTIP vs. VOO - Drawdown Comparison

The maximum VTIP drawdown since its inception was -6.27%, smaller than the maximum VOO drawdown of -33.99%. Use the drawdown chart below to compare losses from any high point for VTIP and VOO.

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Drawdown Indicators

VTIPVOODifference

Max Drawdown

Largest peak-to-trough decline

-6.27%

-33.99%

+27.72%

Max Drawdown (1Y)

Largest decline over 1 year

-0.70%

-8.90%

+8.20%

Max Drawdown (3Y)

Largest decline over 3 years

-0.98%

-18.69%

+17.71%

Max Drawdown (5Y)

Largest decline over 5 years

-5.50%

-24.52%

+19.02%

Max Drawdown (10Y)

Largest decline over 10 years

-6.27%

-33.99%

+27.72%

Current Drawdown

Current decline from peak

-0.02%

-0.70%

+0.68%

Average Drawdown

Average peak-to-trough decline

-1.04%

-3.69%

+2.65%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.18%

1.91%

-1.73%

Volatility

VTIP vs. VOO - Volatility Comparison

The current volatility for Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is 0.43%, while Vanguard S&P 500 ETF (VOO) has a volatility of 2.84%. This indicates that VTIP experiences smaller price fluctuations and is considered to be less risky than VOO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

VTIPVOODifference

Volatility (1M)

Calculated over the trailing 1-month period

0.43%

2.84%

-2.41%

Volatility (6M)

Calculated over the trailing 6-month period

1.02%

8.90%

-7.88%

Volatility (1Y)

Calculated over the trailing 1-year period

1.50%

11.80%

-10.30%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

2.77%

16.81%

-14.04%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

2.74%

18.01%

-15.27%

VTIP vs. VOO - Expense Ratio Comparison

Both VTIP and VOO 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. VOO - Dividend Comparison

VTIP's dividend yield for the trailing twelve months is around 3.58%, more than VOO's 1.03% yield.

PositionTTM20252024202320222021202020192018201720162015
VOO
Vanguard S&P 500 ETF		1.03%1.13%1.24%1.46%1.69%1.25%1.54%1.88%2.06%1.78%2.02%2.10%
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

VTIP and VOO have a correlation of -0.03, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VOO has higher volatility (2.84%) compared to VTIP (0.43%). In terms of maximum drawdown, VTIP dropped -6.27% vs VOO's -33.99%.

On 10-year performance, VOO leads with 15.56% vs 3.14% for VTIP. Both ETFs have the same 0.03% expense ratio. 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.

Over the 10-year period, VOO has performed better with a 15.56% return vs 3.14%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

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

VTIP has the higher dividend yield at 3.58%, compared with 1.03% for VOO.

VTIP is categorized as Inflation-Protected Bonds, while VOO is S&P 500. VTIP tracks Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index, while VOO tracks S&P 500 Index.

VTIP currently has the higher Sharpe Ratio (3.15 vs 2.39), 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.

Portfolio Optimizer

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