BND vs VTIP
Vanguard Total Bond Market ETF vs Vanguard Short-Term Inflation-Protected Securities ETF
Which is better, BND or VTIP?
VTIP has been ahead.
VTIP led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | BND | VTIP |
|---|---|---|
| Expense Ratio | 0.03%Tie | 0.03%Tie |
| AUM | $160.9B | $19.8B |
| Dividend Yield | 4.04% | 4.16% |
| Holdings | 17,437 | 25 |
| YTD Return | -0.85% | +1.32%Best |
| 1Y Return | -0.30% | +1.48%Best |
| 3Y Return (annualized) | +4.15% | +5.14%Best |
| 5Y Return (annualized) | -0.44% | +3.15%Best |
| Volatility (annualized) | 4.8% | 2.4%Best |
| Max Drawdown | -19.6% | -7.1%Best |
| $10,000 over 5 years | $9,782 | $11,677Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Fixed Income |
| Style | Intermediate Term Bond | - |
| Inception | Apr 3, 2007 | Oct 12, 2012 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Oct 16, 2012 to Sep 17, 2026 (13.9 years).
BND vs VTIP growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 13.9 years both funds cover.
BND vs VTIP Performance
Vanguard Total Bond Market ETF (BND) is an ETF from Vanguard (US) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is an ETF from Vanguard (US). Over the past year BND returned -0.30% while VTIP returned +1.48%. Year to date, BND is down 0.85% versus a gain of 1.32% for VTIP.
Over three years, BND compounded at +4.15% per year against +5.14% for VTIP; over five years the annualized figures are -0.44% and +3.15% respectively. Across the full 14-year window we track, VTIP has the edge at +1.53% annualized vs +0.05%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BND has been the more volatile fund, with annualized monthly volatility of 4.8% compared with 2.4% for VTIP. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -19.6% for BND and -7.1% for VTIP. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.61. They move together some of the time, and apart the rest.
Fees and Cost Over Time
BND charges 0.03% per year while VTIP charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, BND currently yields 4.04% against 4.16% for VTIP.
Holdings Overlap
We hold position weights for 16 holdings in BND and 24 in VTIP, totalling 1.5% and 89.6% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 16 positions we hold weights for in BND and 24 in VTIP, against full books of 17,437 and 25.
You are not choosing between two funds in isolation.
Whichever of BND and VTIP you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, BND or VTIP?
BND has an expense ratio of 0.03% while VTIP charges 0.03%. At the precision these are quoted to, they cost the same.
Which performed better, BND or VTIP?
Over the past year BND returned -0.30% vs +1.48% for VTIP, so VTIP leads on 1-year performance. Over the longest common window we track (14 years), BND annualized +0.05% vs +1.53% for VTIP. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, BND or VTIP?
BND has been the more volatile fund at 4.8% annualized versus 2.4% for VTIP. Worst drawdown: BND -19.6% vs VTIP -7.1%.
Should I hold both BND and VTIP?
BND and VTIP have a monthly-return correlation of 0.61, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, BND or VTIP?
BND yields 4.04% while VTIP yields 4.16%, so VTIP currently pays the higher dividend yield.
Is VTIP better than BND?
VTIP led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.