VTIP vs. VUSXX

Last updated Jun 14, 2026

VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) and VUSXX (Vanguard Treasury Money Market Fund) are both funds - VTIP is a Inflation-Protected Bonds fund tracking the Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index, while VUSXX is a Money Market fund actively managed by Vanguard. VTIP is passively managed, while VUSXX is actively managed. Over the past 5 years, VTIP returned 3.37%/yr vs 1.56%/yr for VUSXX. At a 0.05 correlation, their price movements are largely independent. VTIP charges 0.03%/yr vs 0.07%/yr for VUSXX.

Performance

VTIP vs. VUSXX - 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 Treasury Money Market Fund (VUSXX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTIP achieves a 1.85% return, which is significantly higher than VUSXX's 1.51% return.

VTIP

• 1D: -0.04%
• 1M: -0.12%
• YTD: 1.85%
• 6M: 1.95%
• 1Y: 4.51%
• 3Y*: 5.25%
• 5Y*: 3.37%
• 10Y*: 3.09%

VUSXX

• 1D: 0.00%
• 1M: 0.31%
• YTD: 1.51%
• 6M: 1.84%
• 1Y: 3.98%
• 3Y*: 2.61%
• 5Y*: 1.56%
• 10Y*: —

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

VTIP vs. VUSXX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
VTIP Vanguard Short-Term Inflation-Protected Securities ETF	1.85%	6.07%	4.74%	4.62%	-2.94%	2.58%
VUSXX Vanguard Treasury Money Market Fund	1.51%	4.25%	1.65%	0.43%	0.00%	0.00%

Correlation

The correlation between VTIP and VUSXX is 0.07, 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	0.07
Correlation (3Y) Calculated over the trailing 3-year period	0.07
Correlation (5Y) Calculated over the trailing 5-year period	0.05
Correlation (All Time) Calculated using the full available price history since May 25, 2021	0.05

Return for Risk

VTIP vs. VUSXX — Risk / Return Rank

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

VTIP

VTIP Risk / Return Rank: 95
VTIP Sharpe Ratio Rank: 94
VTIP Sortino Ratio Rank: 96
VTIP Omega Ratio Rank: 95
VTIP Calmar Ratio Rank: 95
VTIP Martin Ratio Rank: 95

VUSXX

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. VUSXX - 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 Treasury Money Market Fund (VUSXX). 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	VUSXX	Difference
Sharpe ratio: Return per unit of total volatility	3.07	3.68	-0.61
Sortino ratio: Return per unit of downside risk	5.24	—	—
Omega ratio: Gain probability vs. loss probability	1.65	—	—
Calmar ratio: Return relative to maximum drawdown	6.57	—	—
Martin ratio: Return relative to average drawdown	25.36	—	—

VTIP vs. VUSXX - Sharpe Ratio Comparison

The current VTIP Sharpe Ratio is 3.07, which is comparable to the VUSXX Sharpe Ratio of 3.68. The chart below compares the historical Sharpe Ratios of VTIP and VUSXX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VTIP vs. VUSXX - Drawdown Comparison

The maximum VTIP drawdown since its inception was -6.27%, which is greater than VUSXX's maximum drawdown of 0.00%. Use the drawdown chart below to compare losses from any high point for VTIP and VUSXX.

Drawdown Indicators

	VTIP	VUSXX	Difference
Max Drawdown Largest peak-to-trough decline	-6.27%	0.00%	-6.27%
Max Drawdown (1Y) Largest decline over 1 year	-0.70%	0.00%	-0.70%
Max Drawdown (3Y) Largest decline over 3 years	-0.98%	0.00%	-0.98%
Max Drawdown (5Y) Largest decline over 5 years	-5.50%	0.00%	-5.50%
Max Drawdown (10Y) Largest decline over 10 years	-6.27%	—	—
Current Drawdown Current decline from peak	-0.22%	0.00%	-0.22%
Average Drawdown Average peak-to-trough decline	-1.04%	0.00%	-1.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.18%	0.00%	+0.18%

Volatility

VTIP vs. VUSXX - Volatility Comparison

Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) has a higher volatility of 0.40% compared to Vanguard Treasury Money Market Fund (VUSXX) at 0.31%. This indicates that VTIP's price experiences larger fluctuations and is considered to be riskier than VUSXX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTIP	VUSXX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.40%	0.31%	+0.09%
Volatility (6M) Calculated over the trailing 6-month period	1.04%	0.79%	+0.25%
Volatility (1Y) Calculated over the trailing 1-year period	1.50%	1.12%	+0.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.77%	0.75%	+2.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.74%	0.74%	+2.00%

VTIP vs. VUSXX - Expense Ratio Comparison

VTIP has a 0.03% expense ratio, which is lower than VUSXX's 0.07% 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. VUSXX - Dividend Comparison

VTIP's dividend yield for the trailing twelve months is around 3.59%, less than VUSXX's 3.89% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
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%
VUSXX Vanguard Treasury Money Market Fund	3.89%	4.15%	1.63%	0.43%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VTIP and VUSXX in my portfolio?

VTIP and VUSXX have a correlation of 0.07, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VTIP or VUSXX?

VTIP has higher volatility (0.40%) compared to VUSXX (0.31%). In terms of maximum drawdown, VTIP dropped -6.27% vs VUSXX's 0.00%.

Which has better risk-adjusted returns?

VUSXX currently has the higher Sharpe Ratio (3.68 vs 3.07), 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.