VTIPX vs. TIP
Compare and contrast key facts about Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares (VTIPX) and iShares TIPS Bond ETF (TIP).
VTIPX is managed by Vanguard. It was launched on Oct 16, 2012. TIP is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. Treasury Inflation Protected Securities (TIPS) Index (Series-L). It was launched on Dec 4, 2003.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VTIPX or TIP.
Key characteristics
| VTIPX | TIP | |
|---|---|---|
| YTD Return | 4.52% | 3.24% |
| 1Y Return | 6.53% | 7.38% |
| 3Y Return (Ann) | 1.97% | -2.21% |
| 5Y Return (Ann) | 3.36% | 2.17% |
| 10Y Return (Ann) | 2.26% | 2.12% |
| Sharpe Ratio | 3.10 | 1.28 |
| Sortino Ratio | 5.13 | 1.89 |
| Omega Ratio | 1.71 | 1.23 |
| Calmar Ratio | 3.46 | 0.50 |
| Martin Ratio | 24.88 | 6.07 |
| Ulcer Index | 0.25% | 1.07% |
| Daily Std Dev | 2.01% | 5.04% |
| Max Drawdown | -5.36% | -14.56% |
| Current Drawdown | -0.46% | -6.46% |
Correlation
The correlation between VTIPX and TIP is 0.79, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
VTIPX vs. TIP - Performance Comparison
In the year-to-date period, VTIPX achieves a 4.52% return, which is significantly higher than TIP's 3.24% return. Over the past 10 years, VTIPX has outperformed TIP with an annualized return of 2.26%, while TIP has yielded a comparatively lower 2.12% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VTIPX vs. TIP - Expense Ratio Comparison
VTIPX has a 0.14% expense ratio, which is lower than TIP's 0.19% 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%.
Risk-Adjusted Performance
VTIPX vs. TIP - Risk-Adjusted Performance 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.
Dividends
VTIPX vs. TIP - Dividend Comparison
VTIPX's dividend yield for the trailing twelve months is around 2.79%, more than TIP's 2.39% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VTIPX Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares | 2.79% | 2.76% | 6.74% | 4.59% | 1.11% | 1.88% | 2.38% | 1.50% | 0.55% | 0.00% | 0.72% | 0.02% |
TIP iShares TIPS Bond ETF | 2.39% | 2.73% | 6.96% | 4.28% | 1.17% | 1.75% | 2.71% | 2.07% | 1.48% | 0.34% | 1.67% | 1.15% |
Drawdowns
VTIPX vs. TIP - Drawdown Comparison
The maximum VTIPX drawdown since its inception was -5.36%, smaller than the maximum TIP drawdown of -14.56%. Use the drawdown chart below to compare losses from any high point for VTIPX and TIP. For additional features, visit the drawdowns tool.
Volatility
VTIPX vs. TIP - Volatility Comparison
The current volatility for Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares (VTIPX) is 0.42%, while iShares TIPS Bond ETF (TIP) has a volatility of 1.20%. 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.