TIP vs VXUS
TIP vs VXUS
iShares TIPS Bond ETF vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.
Side-by-Side Comparison
| Metric | TIP | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.05% | |
| AUM | $14.5B | $156.5B | |
| Dividend Yield | 3.77% | 2.60% | |
| Holdings | 50 | 8,747 | |
| YTD Return | +0.07% | +14.57% | |
| 1Y Return | +1.04% | +27.82% | |
| 3Y Return (annualized) | +3.48% | +19.27% | |
| 5Y Return (annualized) | +0.22% | +9.28% | |
| Volatility (annualized) | 5.7% | 15.1% | |
| Max Drawdown | -18.6% | -39.9% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 4, 2003 | Jan 26, 2011 |
TIP vs VXUS Performance
iShares TIPS Bond ETF (TIP) is a ETF from iShares by BlackRock (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year TIP returned +1.04% while VXUS returned +27.82%. Year to date, TIP is up 0.07% versus a gain of 14.57% for VXUS.
Over three years, TIP compounded at +3.48% per year against +19.27% for VXUS; over five years the annualized figures are +0.22% and +9.28% respectively. Across the full 16-year window we track, VXUS has the edge at +4.86% annualized vs +1.21%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXUS 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 -39.9% for VXUS. 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TIP charges 0.18% per year while VXUS charges 0.05%. On a $10,000 position that is $18 vs $5 annually, a gap of $13 per year that compounds over a long holding period. On income, TIP currently yields 3.77% against 2.60% for VXUS.
Holdings Overlap
TIP and VXUS share 0 holdings out of 7902 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, TIP or VXUS?
TIP has an expense ratio of 0.18% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $13 per year of difference.
Which performed better, TIP or VXUS?
Over the past year TIP returned +1.04% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), TIP annualized +1.21% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, TIP or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 5.7% for TIP. Worst drawdown: TIP -18.6% vs VXUS -39.9%.
Should I hold both TIP and VXUS?
TIP and VXUS have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TIP and VXUS?
TIP and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7902 unique securities.
Which pays a higher dividend, TIP or VXUS?
TIP yields 3.77% while VXUS yields 2.60%, so TIP currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.