VTIP vs. VPU
VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) and VPU (Vanguard Utilities 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 VPU is a Utilities Equities fund tracking the MSCI US Investable Market Utilities 25/50 Index. Both are passively managed. Over the past 10 years, VTIP returned 3.07%/yr vs 8.73%/yr for VPU. At a 0.17 correlation, their price movements are largely independent. VTIP charges 0.03%/yr vs 0.09%/yr for VPU.
Performance
VTIP vs. VPU - Performance Comparison
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Returns By Period
In the year-to-date period, VTIP achieves a 1.77% return, which is significantly lower than VPU's 6.36% return. Over the past 10 years, VTIP has underperformed VPU with an annualized return of 3.07%, while VPU has yielded a comparatively higher 8.73% annualized return.
VTIP
- 1D
- -0.07%
- 1M
- 0.24%
- 6M
- 1.77%
- YTD
- 1.77%
- 1Y
- 3.21%
- 3Y*
- 5.09%
- 5Y*
- 3.17%
- 10Y*
- 3.07%
- ALL TIME*
- 2.21%
VPU
- 1D
- 0.01%
- 1M
- 0.81%
- 6M
- 5.41%
- YTD
- 6.36%
- 1Y
- 9.89%
- 3Y*
- 12.74%
- 5Y*
- 9.81%
- 10Y*
- 8.73%
- ALL TIME*
- 9.80%
VTIP vs. VPU - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 1.77% | 6.07% | 4.74% | 4.62% | -2.94% | 5.36% | 4.95% | 4.86% | 0.56% | 0.82% |
VPU Vanguard Utilities ETF | 6.36% | 16.46% | 23.04% | -7.45% | 1.06% | 17.40% | -0.74% | 24.89% | 4.38% | 12.44% |
Correlation
The correlation between VTIP and VPU is 0.08, 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 | 0.08 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.18 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.21 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.18 |
Correlation (All Time) Calculated using the full available price history since Oct 16, 2012 | 0.17 |
The correlation between VTIP and VPU shifts across timeframes, from 0.08 (1 year) to 0.21 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
VTIP vs. VPU — Risk / Return Rank
VTIP
VPU
VTIP vs. VPU - 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 Utilities ETF (VPU). 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 | VPU | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.38 | ||
| Sortino ratioReturn per unit of downside risk | +2.20 | ||
| Omega ratioGain probability vs. loss probability | 1.41 | 1.12 | +0.29 |
| Calmar ratioReturn relative to maximum drawdown | 4.52 | 1.12 | +3.41 |
| Martin ratioReturn relative to average drawdown | 14.39 | 2.32 | +12.07 |
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Drawdowns
VTIP vs. VPU - Drawdown Comparison
The maximum VTIP drawdown since its inception was -6.27%, smaller than the maximum VPU drawdown of -46.31%. Use the drawdown chart below to compare losses from any high point for VTIP and VPU.
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Drawdown Indicators
| VTIP | VPU | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -6.27% | -46.31% | +40.04% |
Max Drawdown (1Y)Largest decline over 1 year | -0.71% | -8.90% | +8.19% |
Max Drawdown (3Y)Largest decline over 3 years | -0.98% | -17.34% | +16.36% |
Max Drawdown (5Y)Largest decline over 5 years | -5.50% | -25.15% | +19.65% |
Max Drawdown (10Y)Largest decline over 10 years | -6.27% | -36.42% | +30.15% |
Current DrawdownCurrent decline from peak | -0.29% | -4.40% | +4.11% |
Average DrawdownAverage peak-to-trough decline | -1.03% | -7.76% | +6.73% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.22% | 4.27% | -4.05% |
Volatility
VTIP vs. VPU - Volatility Comparison
The current volatility for Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is 0.41%, while Vanguard Utilities ETF (VPU) has a volatility of 4.11%. This indicates that VTIP experiences smaller price fluctuations and is considered to be less risky than VPU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VTIP | VPU | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.41% | 4.11% | -3.70% |
Volatility (6M)Calculated over the trailing 6-month period | 1.21% | 11.56% | -10.35% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.57% | 14.55% | -12.98% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.77% | 17.04% | -14.27% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.74% | 19.15% | -16.41% |
VTIP vs. VPU - Expense Ratio Comparison
VTIP has a 0.03% expense ratio, which is lower than VPU's 0.09% 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. VPU - Dividend Comparison
VTIP's dividend yield for the trailing twelve months is around 4.16%, more than VPU's 2.66% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VPU Vanguard Utilities ETF | 2.66% | 2.73% | 3.02% | 3.49% | 2.98% | 2.70% | 3.17% | 2.83% | 3.23% | 3.18% | 3.19% | 3.63% |
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 4.16% | 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 VPU have a correlation of 0.08, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VPU has higher volatility (4.11%) compared to VTIP (0.41%). In terms of maximum drawdown, VTIP dropped -6.27% vs VPU's -46.31%.
On 10-year performance, VPU leads with 8.73% vs 3.07% for VTIP. On fees, VTIP is cheaper at 0.03% per year. On volatility, VTIP has been the lower-risk option at 0.41%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VPU has performed better with a 8.73% return vs 3.07%. 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 0.09% for VPU.
VTIP has the higher dividend yield at 4.16%, compared with 2.66% for VPU.
VTIP is categorized as Inflation-Protected Bonds, while VPU is Utilities Equities. VTIP tracks Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index, while VPU tracks MSCI US Investable Market Utilities 25/50 Index. Their fees differ too: 0.03% for VTIP and 0.09% for VPU.
VTIP currently has the higher Sharpe Ratio (2.06 vs 0.68), 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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