TIP vs VYM
iShares TIPS Bond ETF vs Vanguard High Dividend Yield ETF
Which is better, TIP or VYM?
Inflation Protection against Large Cap Value.
VYM has a lower expense ratio. VYM 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 | VYM |
|---|---|---|
| Expense Ratio | 0.18% | 0.04%Best |
| AUM | $15.0B | $81.6B |
| Dividend Yield | 4.98% | 2.22% |
| Holdings | 51 | 613 |
| YTD Return | -0.49% | +12.29%Best |
| 1Y Return | -1.14% | +16.61%Best |
| 3Y Return (annualized) | +3.58% | +17.42%Best |
| 5Y Return (annualized) | -0.02% | +12.12%Best |
| Volatility (annualized) | 5.8%Best | 14.6% |
| Max Drawdown | -18.6%Best | -58.8% |
| $10,000 over 5 years | $9,990 | $17,718Best |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Inflation Protection | Large Cap Value |
| Inception | Dec 4, 2003 | Nov 10, 2006 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Sep 17, 2026 (19.8 years).
TIP vs VYM 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 19.8 years both funds cover.
TIP vs VYM Performance
iShares TIPS Bond ETF (TIP) is an ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year TIP returned -1.14% while VYM returned +16.61%. Year to date, TIP is down 0.49% versus a gain of 12.29% for VYM.
Over three years, TIP compounded at +3.58% per year against +17.42% for VYM; over five years the annualized figures are -0.02% and +12.12% respectively. Across the full 20-year window we track, VYM has the edge at +6.87% annualized vs +1.47%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 5.8% 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 -58.8% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.30. They move together some of the time, and apart the rest.
Fees and Cost Over Time
TIP charges 0.18% per year while VYM charges 0.04%. On a $10,000 position that is $18 vs $4 annually, a gap of $14 per year that compounds over a long holding period. On income, TIP currently yields 4.98% against 2.22% for VYM.
Holdings Overlap
We hold position weights for 44 holdings in TIP and 557 in VYM, totalling 83.1% and 99.2% 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 557 in VYM, against full books of 51 and 613.
You are not choosing between two funds in isolation.
Whichever of TIP and VYM 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 VYM?
TIP has an expense ratio of 0.18% while VYM charges 0.04%. VYM is the cheaper option, by $14 a year on a $10,000 investment.
Which performed better, TIP or VYM?
Over the past year TIP returned -1.14% vs +16.61% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), TIP annualized +1.47% vs +6.87% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, TIP or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 5.8% for TIP. Worst drawdown: TIP -18.6% vs VYM -58.8%.
Should I hold both TIP and VYM?
TIP and VYM have a monthly-return correlation of 0.30, 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 VYM?
TIP yields 4.98% while VYM yields 2.22%, so TIP currently pays the higher dividend yield.
Is VYM better than TIP?
VYM has a lower expense ratio. VYM 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.