VTP vs. TIP
VTP (Vanguard Total Inflation-Protected Securities ETF) and TIP (iShares TIPS Bond ETF) are both Inflation-Protected Bonds funds - VTP tracks the ICE U.S. Treasury Inflation Linked Bond Index 0-5 while TIP tracks the ICE U.S. Treasury Inflation Linked Bond Index. Both are passively managed. With a 0.97 correlation, they move nearly in lockstep. VTP charges 0.05%/yr vs 0.18%/yr for TIP.
Performance
VTP vs. TIP - Performance Comparison
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Returns By Period
The year-to-date returns for both stocks are quite close, with VTP having a 0.75% return and TIP slightly lower at 0.74%.
VTP
- 1D
- -0.02%
- 1M
- -0.12%
- YTD
- 0.75%
- 6M
- 0.95%
- 1Y
- —
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
TIP
- 1D
- -0.04%
- 1M
- -0.19%
- YTD
- 0.74%
- 6M
- 0.81%
- 1Y
- 3.34%
- 3Y*
- 3.52%
- 5Y*
- 0.82%
- 10Y*
- 2.43%
VTP vs. TIP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | |
|---|---|---|
VTP Vanguard Total Inflation-Protected Securities ETF | 0.75% | 2.46% |
TIP iShares TIPS Bond ETF | 0.74% | 2.46% |
Correlation
The correlation between VTP and TIP is 0.97 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.
| Correlation | |
|---|---|
Correlation (All Time) Calculated using the full available price history since Jul 9, 2025 | 0.97 |
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Return for Risk
VTP vs. TIP — Risk / Return Rank
VTP
Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.
TIP
VTP vs. TIP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Inflation-Protected Securities ETF (VTP) 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.
| VTP | TIP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | — | — | |
| Sortino ratioReturn per unit of downside risk | — | — | |
| Omega ratioGain probability vs. loss probability | — | 1.17 | — |
| Calmar ratioReturn relative to maximum drawdown | — | 1.70 | — |
| Martin ratioReturn relative to average drawdown | — | 4.99 | — |
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Drawdowns
VTP vs. TIP - Drawdown Comparison
The maximum VTP drawdown since its inception was -1.92%, smaller than the maximum TIP drawdown of -14.57%. Use the drawdown chart below to compare losses from any high point for VTP and TIP.
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Drawdown Indicators
| VTP | TIP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -1.92% | -14.57% | +12.65% |
Max Drawdown (1Y)Largest decline over 1 year | — | -1.98% | — |
Max Drawdown (3Y)Largest decline over 3 years | — | -4.54% | — |
Max Drawdown (5Y)Largest decline over 5 years | — | -14.51% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -14.51% | — |
Current DrawdownCurrent decline from peak | -1.09% | -1.11% | +0.02% |
Average DrawdownAverage peak-to-trough decline | -0.52% | -3.43% | +2.91% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | — | 0.67% | — |
Volatility
VTP vs. TIP - Volatility Comparison
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Volatility by Period
| VTP | TIP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | — | 1.22% | — |
Volatility (6M)Calculated over the trailing 6-month period | — | 2.47% | — |
Volatility (1Y)Calculated over the trailing 1-year period | 3.34% | 3.44% | -0.10% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.34% | 6.20% | -2.86% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.34% | 5.74% | -2.40% |
VTP vs. TIP - Expense Ratio Comparison
VTP has a 0.05% 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
VTP vs. TIP - Dividend Comparison
VTP's dividend yield for the trailing twelve months is around 1.62%, 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% |
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% | 0.00% |
Frequently Asked Questions
With a correlation of 0.97, VTP and TIP move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
On fees, VTP is cheaper at 0.05% per year. The better choice depends on whether you care most about return, fees, risk, or income.
VTP is cheaper with a 0.05% expense ratio, compared with 0.18% for TIP.
TIP has the higher dividend yield at 3.79%, compared with 1.62% for VTP.
VTP tracks ICE U.S. Treasury Inflation Linked Bond Index 0-5, while TIP tracks ICE U.S. Treasury Inflation Linked Bond Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.05% for VTP and 0.18% for TIP.
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