VTIPX vs. TIP
VTIPX (Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares) and TIP (iShares TIPS Bond ETF) are both Inflation-Protected Bonds funds. Over the past 10 years, VTIPX returned 2.96%/yr vs 2.43%/yr for TIP. A 0.79 correlation means they provide meaningful diversification when combined. VTIPX charges 0.14%/yr vs 0.18%/yr for TIP.
Performance
VTIPX vs. TIP - Performance Comparison
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Returns By Period
In the year-to-date period, VTIPX achieves a 1.39% return, which is significantly higher than TIP's 0.78% return. Over the past 10 years, VTIPX has outperformed TIP with an annualized return of 2.96%, while TIP has yielded a comparatively lower 2.43% 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%
TIP
- 1D
- -0.41%
- 1M
- -0.16%
- YTD
- 0.78%
- 6M
- 0.90%
- 1Y
- 3.46%
- 3Y*
- 3.53%
- 5Y*
- 0.79%
- 10Y*
- 2.43%
VTIPX vs. TIP - 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% |
TIP iShares TIPS Bond ETF | 0.78% | 6.77% | 1.65% | 3.80% | -12.26% | 5.68% | 10.84% | 8.35% | -1.42% | 2.92% |
Correlation
The correlation between VTIPX and TIP is 0.75, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.75 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.82 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.82 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.80 |
Correlation (All Time) Calculated using the full available price history since Jan 2, 2013 | 0.79 |
The correlation between VTIPX and TIP has been stable across timeframes, ranging from 0.75 to 0.82 - a consistent structural relationship.
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Return for Risk
VTIPX vs. TIP — Risk / Return Rank
VTIPX
TIP
VTIPX vs. TIP - 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 iShares TIPS Bond ETF (TIP). 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 | TIP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.43 | ||
| Sortino ratioReturn per unit of downside risk | +2.35 | ||
| Omega ratioGain probability vs. loss probability | 1.50 | 1.18 | +0.32 |
| Calmar ratioReturn relative to maximum drawdown | 5.28 | 1.76 | +3.52 |
| Martin ratioReturn relative to average drawdown | 19.50 | 5.20 | +14.30 |
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Drawdowns
VTIPX vs. TIP - Drawdown Comparison
The maximum VTIPX drawdown since its inception was -5.36%, smaller than the maximum TIP drawdown of -14.57%. Use the drawdown chart below to compare losses from any high point for VTIPX and TIP.
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Drawdown Indicators
| VTIPX | TIP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.36% | -14.57% | +9.21% |
Max Drawdown (1Y)Largest decline over 1 year | -0.72% | -1.98% | +1.26% |
Max Drawdown (3Y)Largest decline over 3 years | -0.95% | -4.54% | +3.59% |
Max Drawdown (5Y)Largest decline over 5 years | -5.36% | -14.51% | +9.15% |
Max Drawdown (10Y)Largest decline over 10 years | -5.36% | -14.51% | +9.15% |
Current DrawdownCurrent decline from peak | -0.63% | -1.07% | +0.44% |
Average DrawdownAverage peak-to-trough decline | -1.11% | -3.43% | +2.32% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.19% | 0.67% | -0.48% |
Volatility
VTIPX vs. TIP - Volatility Comparison
The current volatility for Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares (VTIPX) is 0.64%, while iShares TIPS Bond ETF (TIP) has a volatility of 1.22%. This indicates that VTIPX experiences smaller price fluctuations and is considered to be less risky than TIP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VTIPX | TIP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.64% | 1.22% | -0.58% |
Volatility (6M)Calculated over the trailing 6-month period | 1.19% | 2.47% | -1.28% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.56% | 3.45% | -1.89% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.65% | 6.20% | -3.55% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.23% | 5.74% | -3.51% |
VTIPX vs. TIP - Expense Ratio Comparison
VTIPX has a 0.14% expense ratio, which is lower than TIP's 0.18% 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
VTIPX vs. TIP - Dividend Comparison
VTIPX's dividend yield for the trailing twelve months is around 3.50%, less than TIP's 3.79% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TIP iShares TIPS Bond ETF | 3.79% | 3.46% | 2.52% | 2.73% | 6.96% | 4.28% | 1.17% | 1.75% | 2.71% | 2.07% | 1.48% | 0.34% |
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
VTIPX and TIP have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TIP has higher volatility (1.22%) compared to VTIPX (0.64%). In terms of maximum drawdown, VTIPX dropped -5.36% vs TIP's -14.57%.
VTIPX currently has the higher Sharpe Ratio (2.44 vs 1.01), 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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