VTP vs. TIPZ

Last updated Jun 4, 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 0-5 while TIPZ tracks the ICE BofA US Inflation-Linked Treasury. Both are passively managed. 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 1.55% return, which is significantly lower than TIPZ's 2.58% return.

VTP

• 1D: -0.16%
• 1M: -0.08%
• YTD: 1.55%
• 6M: 1.09%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

TIPZ

• 1D: -0.20%
• 1M: -0.01%
• YTD: 2.58%
• 6M: 1.00%
• 1Y: 5.12%
• 3Y*: 3.86%
• 5Y*: 0.77%
• 10Y*: 2.49%

*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	1.55%	2.27%
TIPZ PIMCO Broad US TIPS Index ETF	2.58%	1.16%

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 (All Time) Calculated using the full available price history since Jul 10, 2025	0.93

Return for Risk

VTP vs. TIPZ — Risk / Return Rank

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

TIPZ

TIPZ Risk / Return Rank: 40
TIPZ Sharpe Ratio Rank: 36
TIPZ Sortino Ratio Rank: 37
TIPZ Omega Ratio Rank: 37
TIPZ Calmar Ratio Rank: 48
TIPZ Martin Ratio Rank: 45

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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	VTP	TIPZ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	1.31	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.12	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.43	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.31	0.53	+0.79

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	—	-2.18%	—
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	-0.30%	-1.44%	+1.14%
Average Drawdown Average peak-to-trough decline	-0.52%	-4.33%	+3.81%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.70%	—

Volatility

Volatility by Period

	VTP	TIPZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	0.96%	—
Volatility (6M) Calculated over the trailing 6-month period	—	2.88%	—
Volatility (1Y) Calculated over the trailing 1-year period	3.26%	3.92%	-0.66%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.26%	6.37%	-3.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.26%	5.84%	-2.58%

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 1.61%, less than TIPZ's 5.11% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TIPZ PIMCO Broad US TIPS Index ETF	5.11%	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	1.61%	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 ETF is better, VTP or TIPZ?

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.

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 5.11%, compared with 1.61% for VTP.

What is the main difference between VTP and TIPZ?

VTP tracks ICE U.S. Treasury Inflation Linked Bond Index 0-5, 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.