TIP vs VTI
iShares TIPS Bond ETF vs Vanguard Morningstar Total Stock Market ETF
Which is better, TIP or VTI?
Inflation Protection against Large Cap Blend.
VTI has a lower expense ratio. VTI 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 | TIP | VTI |
|---|---|---|
| Expense Ratio | 0.18% | 0.03%Best |
| AUM | $15.0B | $666.9B |
| Dividend Yield | 4.98% | 1.03% |
| Holdings | 51 | 3,543 |
| YTD Return | -0.49% | +12.28%Best |
| 1Y Return | -1.14% | +16.78%Best |
| 3Y Return (annualized) | +3.58% | +20.89%Best |
| 5Y Return (annualized) | -0.02% | +11.94%Best |
| Volatility (annualized) | 5.7%Best | 15.1% |
| Max Drawdown | -18.6%Best | -56.6% |
| $10,000 over 5 years | $9,990 | $17,576Best |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Inflation Protection | Large Cap Blend |
| Inception | Dec 4, 2003 | May 24, 2001 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Dec 5, 2003 to Sep 17, 2026 (22.8 years).
TIP vs VTI 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
TIP vs VTI Performance
iShares TIPS Bond ETF (TIP) is an ETF from iShares by BlackRock (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year TIP returned -1.14% while VTI returned +16.78%. Year to date, TIP is down 0.49% versus a gain of 12.28% for VTI.
Over three years, TIP compounded at +3.58% per year against +20.89% for VTI; over five years the annualized figures are -0.02% and +11.94% respectively. Across the full 23-year window we track, VTI has the edge at +9.49% annualized vs +1.18%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 5.7% for TIP. 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 -18.6% for TIP and -56.6% for VTI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.31. They move together some of the time, and apart the rest.
Fees and Cost Over Time
TIP charges 0.18% per year while VTI charges 0.03%. On a $10,000 position that is $18 vs $3 annually, a gap of $15 per year that compounds over a long holding period. On income, TIP currently yields 4.98% against 1.03% for VTI.
Holdings Overlap
We hold position weights for 44 holdings in TIP and 3,463 in VTI, totalling 83.1% and 98.1% 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 44 positions we hold weights for in TIP and 3,463 in VTI, against full books of 51 and 3,543.
You are not choosing between two funds in isolation.
Whichever of TIP and VTI 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, TIP or VTI?
TIP has an expense ratio of 0.18% while VTI charges 0.03%. VTI is the cheaper option, by $15 a year on a $10,000 investment.
Which performed better, TIP or VTI?
Over the past year TIP returned -1.14% vs +16.78% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (23 years), TIP annualized +1.18% vs +9.49% for VTI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, TIP or VTI?
VTI has been the more volatile fund at 15.1% annualized versus 5.7% for TIP. Worst drawdown: TIP -18.6% vs VTI -56.6%.
Should I hold both TIP and VTI?
TIP and VTI have a monthly-return correlation of 0.31, 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, TIP or VTI?
TIP yields 4.98% while VTI yields 1.03%, so TIP currently pays the higher dividend yield.
Is VTI better than TIP?
VTI has a lower expense ratio. VTI 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.