VTIPX vs. SPY

Last updated Jun 23, 2026

VTIPX (Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares) and SPY (State Street SPDR S&P 500 ETF) are both funds - VTIPX is a Inflation-Protected Bonds fund managed by Vanguard, while SPY is a S&P 500 fund tracking the S&P 500 Index. Over the past 10 years, VTIPX returned 2.96%/yr vs 15.70%/yr for SPY. At a 0.06 correlation, their price movements are largely independent. VTIPX charges 0.14%/yr vs 0.09%/yr for SPY.

Performance

VTIPX vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares (VTIPX) and State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTIPX achieves a 1.39% return, which is significantly lower than SPY's 9.74% return. Over the past 10 years, VTIPX has underperformed SPY with an annualized return of 2.96%, while SPY has yielded a comparatively higher 15.70% annualized return.

VTIPX

• 1D: 0.00%
• 1M: -0.08%
• YTD: 1.39%
• 6M: 1.47%
• 1Y: 3.65%
• 3Y*: 4.94%
• 5Y*: 3.26%
• 10Y*: 2.96%

SPY

• 1D: -0.31%
• 1M: 0.09%
• YTD: 9.74%
• 6M: 9.27%
• 1Y: 26.65%
• 3Y*: 21.27%
• 5Y*: 13.51%
• 10Y*: 15.70%

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

VTIPX vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VTIPX Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares	1.39%	5.96%	4.65%	4.51%	-2.93%	5.21%	4.85%	4.74%	0.49%	0.72%
SPY State Street SPDR S&P 500 ETF	9.74%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%

Correlation

The correlation between VTIPX and SPY 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	0.10
Correlation (5Y) Calculated over the trailing 5-year period	0.15
Correlation (10Y) Calculated over the trailing 10-year period	0.09
Correlation (All Time) Calculated using the full available price history since Jan 2, 2013	0.06

Return for Risk

VTIPX vs. SPY — Risk / Return Rank

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

VTIPX

VTIPX Risk / Return Rank: 88
VTIPX Sharpe Ratio Rank: 81
VTIPX Sortino Ratio Rank: 87
VTIPX Omega Ratio Rank: 82
VTIPX Calmar Ratio Rank: 95
VTIPX Martin Ratio Rank: 94

SPY

SPY Risk / Return Rank: 68
SPY Sharpe Ratio Rank: 69
SPY Sortino Ratio Rank: 66
SPY Omega Ratio Rank: 68
SPY Calmar Ratio Rank: 63
SPY Martin Ratio Rank: 74

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.

VTIPX vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares (VTIPX) and State Street SPDR S&P 500 ETF (SPY). 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.

	VTIPX	SPY	Difference
Sharpe ratio: Return per unit of total volatility	2.44	2.16	+0.28
Sortino ratio: Return per unit of downside risk	3.86	2.91	+0.95
Omega ratio: Gain probability vs. loss probability	1.50	1.39	+0.11
Calmar ratio: Return relative to maximum drawdown	5.28	3.01	+2.27
Martin ratio: Return relative to average drawdown	19.50	13.54	+5.96

VTIPX vs. SPY - Sharpe Ratio Comparison

The current VTIPX Sharpe Ratio is 2.44, which is comparable to the SPY Sharpe Ratio of 2.16. The chart below compares the historical Sharpe Ratios of VTIPX and SPY, 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

VTIPX vs. SPY - Drawdown Comparison

The maximum VTIPX drawdown since its inception was -5.36%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for VTIPX and SPY.

Drawdown Indicators

	VTIPX	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-5.36%	-55.19%	+49.83%
Max Drawdown (1Y) Largest decline over 1 year	-0.72%	-8.88%	+8.16%
Max Drawdown (3Y) Largest decline over 3 years	-0.95%	-18.76%	+17.81%
Max Drawdown (5Y) Largest decline over 5 years	-5.36%	-24.50%	+19.14%
Max Drawdown (10Y) Largest decline over 10 years	-5.36%	-33.72%	+28.36%
Current Drawdown Current decline from peak	-0.63%	-1.75%	+1.12%
Average Drawdown Average peak-to-trough decline	-1.11%	-9.04%	+7.93%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.19%	1.97%	-1.78%

Volatility

VTIPX vs. SPY - Volatility Comparison

The current volatility for Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares (VTIPX) is 0.64%, while State Street SPDR S&P 500 ETF (SPY) has a volatility of 4.64%. This indicates that VTIPX experiences smaller price fluctuations and is considered to be less risky than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTIPX	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.64%	4.64%	-4.00%
Volatility (6M) Calculated over the trailing 6-month period	1.19%	9.75%	-8.56%
Volatility (1Y) Calculated over the trailing 1-year period	1.56%	12.43%	-10.87%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.65%	17.14%	-14.49%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.23%	17.99%	-15.76%

VTIPX vs. SPY - Expense Ratio Comparison

VTIPX has a 0.14% expense ratio, which is higher than SPY's 0.09% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VTIPX vs. SPY - Dividend Comparison

VTIPX's dividend yield for the trailing twelve months is around 3.50%, more than SPY's 1.01% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPY State Street SPDR S&P 500 ETF	1.01%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%
VTIPX Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares	3.50%	3.70%	2.60%	2.76%	6.74%	4.59%	1.11%	1.88%	2.37%	1.50%	0.55%	0.00%

Frequently Asked Questions

Can I hold both VTIPX and SPY in my portfolio?

VTIPX and SPY 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, VTIPX or SPY?

SPY has higher volatility (4.64%) compared to VTIPX (0.64%). In terms of maximum drawdown, VTIPX dropped -5.36% vs SPY's -55.19%.

Which has better risk-adjusted returns?

VTIPX currently has the higher Sharpe Ratio (2.44 vs 2.16), 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.