VWEAX vs. VTIP
Compare and contrast key facts about Vanguard High-Yield Corporate Fund Admiral Shares (VWEAX) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP).
VWEAX is managed by Vanguard. It was launched on Nov 12, 2001. VTIP is a passively managed fund by Vanguard that tracks the performance of the Barclays Capital U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Years Index (Series-L). It was launched on Oct 12, 2012.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VWEAX or VTIP.
Key characteristics
| VWEAX | VTIP | |
|---|---|---|
| YTD Return | -0.53% | 0.88% |
| 1Y Return | 7.01% | 3.49% |
| 3Y Return (Ann) | 1.30% | 2.10% |
| 5Y Return (Ann) | 3.27% | 3.21% |
| 10Y Return (Ann) | 4.02% | 1.99% |
| Sharpe Ratio | 1.65 | 1.41 |
| Daily Std Dev | 4.78% | 2.55% |
| Max Drawdown | -30.03% | -6.27% |
| Current Drawdown | -1.30% | -0.10% |
Correlation
The correlation between VWEAX and VTIP is 0.20, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
VWEAX vs. VTIP - Performance Comparison
In the year-to-date period, VWEAX achieves a -0.53% return, which is significantly lower than VTIP's 0.88% return. Over the past 10 years, VWEAX has outperformed VTIP with an annualized return of 4.02%, while VTIP has yielded a comparatively lower 1.99% 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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VWEAX vs. VTIP - Expense Ratio Comparison
VWEAX has a 0.13% expense ratio, which is higher than VTIP's 0.04% expense ratio. However, 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
VWEAX vs. VTIP - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard High-Yield Corporate Fund Admiral Shares (VWEAX) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP). 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
VWEAX vs. VTIP - Dividend Comparison
VWEAX's dividend yield for the trailing twelve months is around 5.57%, more than VTIP's 3.32% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VWEAX Vanguard High-Yield Corporate Fund Admiral Shares | 5.57% | 5.79% | 5.21% | 4.23% | 4.71% | 5.34% | 6.04% | 5.38% | 5.52% | 6.00% | 5.71% | 5.89% |
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 3.32% | 3.36% | 6.84% | 4.68% | 1.20% | 1.95% | 2.45% | 1.52% | 0.76% | 0.00% | 0.82% | 0.05% |
Drawdowns
VWEAX vs. VTIP - Drawdown Comparison
The maximum VWEAX drawdown since its inception was -30.03%, which is greater than VTIP's maximum drawdown of -6.27%. Use the drawdown chart below to compare losses from any high point for VWEAX and VTIP. For additional features, visit the drawdowns tool.
Volatility
VWEAX vs. VTIP - Volatility Comparison
Vanguard High-Yield Corporate Fund Admiral Shares (VWEAX) has a higher volatility of 1.10% compared to Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) at 0.55%. This indicates that VWEAX's price experiences larger fluctuations and is considered to be riskier than VTIP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.