VTP vs. TIPZ

Last updated Jul 15, 2026

VTP (Vanguard Total Inflation-Protected Securities ETF) and TIPZ (PIMCO Broad US TIPS Index ETF) are both Inflation-Protected Bonds funds - VTP tracks the ICE U.S. Treasury Inflation Linked Bond Index while TIPZ tracks the ICE BofA US Inflation-Linked Treasury. Both are passively managed. Over the past year, VTP returned 3.27% vs 3.17% for TIPZ. Their correlation of 0.93 suggests significant overlap in exposure. VTP charges 0.05%/yr vs 0.20%/yr for TIPZ.

Performance

VTP vs. TIPZ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Total Inflation-Protected Securities ETF (VTP) and PIMCO Broad US TIPS Index ETF (TIPZ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTP achieves a 0.90% return, which is significantly lower than TIPZ's 1.87% return.

VTP

• 1D: 0.07%
• 1M: -0.50%
• 6M: 0.58%
• YTD: 0.90%
• 1Y: 3.27%
• 3Y*: —
• 5Y*: —
• 10Y*: —

TIPZ

• 1D: 0.04%
• 1M: -0.47%
• 6M: 0.47%
• YTD: 1.87%
• 1Y: 3.17%
• 3Y*: 3.58%
• 5Y*: 0.22%
• 10Y*: 2.25%

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

VTP vs. TIPZ - Yearly Performance Comparison

	2026 (YTD)	2025
VTP Vanguard Total Inflation-Protected Securities ETF	0.90%	2.46%
TIPZ PIMCO Broad US TIPS Index ETF	1.87%	1.52%

Correlation

The correlation between VTP and TIPZ is 0.93, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.93
Correlation (All Time) Calculated using the full available price history since Jul 9, 2025	0.93

The correlation between VTP and TIPZ has been stable across timeframes, ranging from 0.93 to 0.93 - a consistent structural relationship.

Return for Risk

VTP vs. TIPZ — Risk / Return Rank

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

VTP

VTP Risk / Return Rank: 35
VTP Sharpe Ratio Rank: 33
VTP Sortino Ratio Rank: 32
VTP Omega Ratio Rank: 30
VTP Calmar Ratio Rank: 42
VTP Martin Ratio Rank: 38

TIPZ

TIPZ Risk / Return Rank: 30
TIPZ Sharpe Ratio Rank: 27
TIPZ Sortino Ratio Rank: 25
TIPZ Omega Ratio Rank: 25
TIPZ Calmar Ratio Rank: 35
TIPZ Martin Ratio Rank: 35

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.

VTP vs. TIPZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Inflation-Protected Securities ETF (VTP) and PIMCO Broad US TIPS Index ETF (TIPZ). 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	TIPZ	Difference
Sharpe ratio: Return per unit of total volatility	0.98	0.81	+0.16
Sortino ratio: Return per unit of downside risk	1.43	1.18	+0.25
Omega ratio: Gain probability vs. loss probability	1.17	1.15	+0.03
Calmar ratio: Return relative to maximum drawdown	1.71	1.46	+0.24
Martin ratio: Return relative to average drawdown	4.86	4.38	+0.48

VTP vs. TIPZ - Sharpe Ratio Comparison

The current VTP Sharpe Ratio is 0.98, which is comparable to the TIPZ Sharpe Ratio of 0.81. The chart below compares the historical Sharpe Ratios of VTP and TIPZ, 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

VTP vs. TIPZ - Drawdown Comparison

The maximum VTP drawdown since its inception was -1.92%, smaller than the maximum TIPZ drawdown of -15.77%. Use the drawdown chart below to compare losses from any high point for VTP and TIPZ.

Drawdown Indicators

	VTP	TIPZ	Difference
Max Drawdown Largest peak-to-trough decline	-1.92%	-15.77%	+13.85%
Max Drawdown (1Y) Largest decline over 1 year	-1.92%	-2.18%	+0.26%
Max Drawdown (3Y) Largest decline over 3 years	—	-4.74%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-15.77%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-15.77%	—
Current Drawdown Current decline from peak	-0.94%	-2.12%	+1.18%
Average Drawdown Average peak-to-trough decline	-0.53%	-4.31%	+3.78%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.67%	0.73%	-0.06%

Volatility

VTP vs. TIPZ - Volatility Comparison

Vanguard Total Inflation-Protected Securities ETF (VTP) has a higher volatility of 1.19% compared to PIMCO Broad US TIPS Index ETF (TIPZ) at 1.13%. This indicates that VTP's price experiences larger fluctuations and is considered to be riskier than TIPZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTP	TIPZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.19%	1.13%	+0.06%
Volatility (6M) Calculated over the trailing 6-month period	2.48%	2.60%	-0.12%
Volatility (1Y) Calculated over the trailing 1-year period	3.36%	3.92%	-0.56%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.35%	6.35%	-3.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.35%	5.83%	-2.48%

VTP vs. TIPZ - Expense Ratio Comparison

VTP has a 0.05% expense ratio, which is lower than TIPZ's 0.20% 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. TIPZ - Dividend Comparison

VTP's dividend yield for the trailing twelve months is around 2.98%, less than TIPZ's 5.80% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TIPZ PIMCO Broad US TIPS Index ETF	5.80%	4.74%	4.44%	4.69%	7.14%	4.41%	1.47%	1.65%	2.23%	1.70%	1.06%	0.56%
VTP Vanguard Total Inflation-Protected Securities ETF	2.98%	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

Can I hold both VTP and TIPZ in my portfolio?

With a correlation of 0.93, VTP and TIPZ 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.

Which is riskier, VTP or TIPZ?

VTP has higher volatility (1.19%) compared to TIPZ (1.13%). In terms of maximum drawdown, VTP dropped -1.92% vs TIPZ's -15.77%.

Which ETF is better, VTP or TIPZ?

On 1-year performance, VTP leads with 3.27% vs 3.17% for TIPZ. On fees, VTP is cheaper at 0.05% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VTP or TIPZ?

Over the 1-year period, VTP has performed better with a 3.27% return vs 3.17%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VTP or TIPZ?

VTP is cheaper with a 0.05% expense ratio, compared with 0.20% for TIPZ.

Which ETF pays a higher dividend yield, VTP or TIPZ?

TIPZ has the higher dividend yield at 5.80%, compared with 2.98% for VTP.

What is the main difference between VTP and TIPZ?

VTP tracks ICE U.S. Treasury Inflation Linked Bond Index, while TIPZ tracks ICE BofA US Inflation-Linked Treasury. They also come from different issuers: Vanguard and PIMCO. Their fees differ too: 0.05% for VTP and 0.20% for TIPZ.

Which has better risk-adjusted returns?

VTP currently has the higher Sharpe Ratio (0.98 vs 0.81), 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.