STIP vs VTI

Quick Verdict

VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.

Lower Fees: TiedHigher Returns: VTIMore Diversified: VTI

Side-by-Side Comparison

MetricSTIPVTIWinner
Expense Ratio0.03%0.03%
AUM$15.9B$663.5B
Dividend Yield4.32%1.07%
Holdings273,543
YTD Return+1.20%+14.96%
1Y Return+2.16%+22.39%
3Y Return (annualized)+4.90%+21.51%
5Y Return (annualized)+3.00%+12.36%
Volatility (annualized)2.2%15.4%
Max Drawdown-6.9%-56.6%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionDec 1, 2010May 24, 2001

STIP vs VTI Performance

iShares 0-5 Year TIPS Bond ETF (STIP) is a ETF from iShares by BlackRock (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year STIP returned +2.16% while VTI returned +22.39%. Year to date, STIP is up 1.20% versus a gain of 14.96% for VTI.

Over three years, STIP compounded at +4.90% per year against +21.51% for VTI; over five years the annualized figures are +3.00% and +12.36% respectively. Across the full 16-year window we track, VTI has the edge at +8.16% annualized vs +1.51%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VTI has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 2.2% for STIP. 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 -6.9% for STIP and -56.6% for VTI. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

STIP charges 0.03% per year while VTI charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, STIP currently yields 4.32% against 1.07% for VTI.

Holdings Overlap

0.0%overlap

STIP and VTI share 0 holdings out of 2807 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, STIP or VTI?

STIP has an expense ratio of 0.03% while VTI charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.

Which performed better, STIP or VTI?

Over the past year STIP returned +2.16% vs +22.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (16 years), STIP annualized +1.51% vs +8.16% for VTI. Past performance does not guarantee future results.

Which is riskier, STIP or VTI?

VTI has been the more volatile fund at 15.4% annualized versus 2.2% for STIP. Worst drawdown: STIP -6.9% vs VTI -56.6%.

Should I hold both STIP and VTI?

STIP and VTI have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between STIP and VTI?

STIP and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2807 unique securities.

Which pays a higher dividend, STIP or VTI?

STIP yields 4.32% while VTI yields 1.07%, so STIP currently pays the higher dividend yield.

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