VTIP vs. VTP

Last updated Jun 25, 2026

VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) and VTP (Vanguard Total Inflation-Protected Securities ETF) are both Inflation-Protected Bonds funds from Vanguard - VTIP tracks the Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index while VTP tracks the ICE U.S. Treasury Inflation Linked Bond Index 0-5. Both are passively managed. A 0.76 correlation means they provide meaningful diversification when combined. VTIP charges 0.03%/yr vs 0.05%/yr for VTP.

Performance

VTIP vs. VTP - 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 Total Inflation-Protected Securities ETF (VTP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTIP achieves a 1.38% return, which is significantly higher than VTP's 1.10% return.

VTIP

• 1D: 0.02%
• 1M: -0.20%
• YTD: 1.38%
• 6M: 1.47%
• 1Y: 3.60%
• 3Y*: 5.01%
• 5Y*: 3.27%
• 10Y*: 3.03%

VTP

• 1D: 0.34%
• 1M: 0.22%
• YTD: 1.10%
• 6M: 1.02%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

VTIP vs. VTP - Yearly Performance Comparison

	2026 (YTD)	2025
VTIP Vanguard Short-Term Inflation-Protected Securities ETF	1.38%	1.97%
VTP Vanguard Total Inflation-Protected Securities ETF	1.10%	2.46%

Correlation

The correlation between VTIP and VTP is 0.76, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jul 9, 2025	0.76

Return for Risk

VTIP vs. VTP — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VTIP

VTIP Risk / Return Rank: 87
VTIP Sharpe Ratio Rank: 80
VTIP Sortino Ratio Rank: 88
VTIP Omega Ratio Rank: 86
VTIP Calmar Ratio Rank: 90
VTIP Martin Ratio Rank: 88

VTP

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

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. VTP - 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 Total Inflation-Protected Securities ETF (VTP). 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	VTP	Difference
Sharpe ratio: Return per unit of total volatility	2.30	—	—
Sortino ratio: Return per unit of downside risk	3.60	—	—
Omega ratio: Gain probability vs. loss probability	1.47	—	—
Calmar ratio: Return relative to maximum drawdown	5.06	—	—
Martin ratio: Return relative to average drawdown	17.61	—	—

Drawdowns

VTIP vs. VTP - Drawdown Comparison

The maximum VTIP drawdown since its inception was -6.27%, which is greater than VTP's maximum drawdown of -1.92%. Use the drawdown chart below to compare losses from any high point for VTIP and VTP.

Drawdown Indicators

	VTIP	VTP	Difference
Max Drawdown Largest peak-to-trough decline	-6.27%	-1.92%	-4.35%
Max Drawdown (1Y) Largest decline over 1 year	-0.71%	—	—
Max Drawdown (3Y) Largest decline over 3 years	-0.98%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-5.50%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-6.27%	—	—
Current Drawdown Current decline from peak	-0.67%	-0.75%	+0.08%
Average Drawdown Average peak-to-trough decline	-1.04%	-0.52%	-0.52%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.20%	—	—

Volatility

Volatility by Period

	VTIP	VTP	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.64%	—	—
Volatility (6M) Calculated over the trailing 6-month period	1.17%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	1.57%	3.35%	-1.78%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.77%	3.35%	-0.58%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.74%	3.35%	-0.61%

VTIP vs. VTP - Expense Ratio Comparison

VTIP has a 0.03% expense ratio, which is lower than VTP's 0.05% 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. VTP - Dividend Comparison

VTIP's dividend yield for the trailing twelve months is around 3.61%, more than VTP's 1.62% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
VTIP Vanguard Short-Term Inflation-Protected Securities ETF	3.61%	3.81%	2.70%	2.86%	6.84%	4.68%	1.20%	1.95%	2.45%	1.52%	0.76%
VTP Vanguard Total Inflation-Protected Securities ETF	1.62%	1.56%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VTIP and VTP in my portfolio?

VTIP and VTP have a correlation of 0.76, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VTIP or VTP?

On fees, VTIP is cheaper at 0.03% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VTIP or VTP?

VTIP is cheaper with a 0.03% expense ratio, compared with 0.05% for VTP.

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

VTIP has the higher dividend yield at 3.61%, compared with 1.62% for VTP.

What is the main difference between VTIP and VTP?

VTIP tracks Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index, while VTP tracks ICE U.S. Treasury Inflation Linked Bond Index 0-5. Their fees differ too: 0.03% for VTIP and 0.05% for VTP.