VIG vs VTIP
Vanguard Dividend Appreciation ETF vs Vanguard Short-Term Inflation-Protected Securities ETF
Quick Verdict
VTIP has a lower expense ratio. VIG delivered stronger 1-year returns. VIG offers more diversification with 331 holdings.
Side-by-Side Comparison
| Metric | VIG | VTIP | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.03% | |
| AUM | $110.2B | $19.3B | |
| Dividend Yield | 1.79% | 3.60% | |
| Holdings | 335 | 27 | |
| YTD Return | +12.07% | +1.87% | |
| 1Y Return | +20.98% | +3.01% | |
| 3Y Return (annualized) | +16.55% | +5.37% | |
| 5Y Return (annualized) | +10.94% | +3.39% | |
| Volatility (annualized) | 13.3% | 2.4% | |
| Max Drawdown | -48.2% | -7.1% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Apr 21, 2006 | Oct 12, 2012 |
VIG vs VTIP Performance
Vanguard Dividend Appreciation ETF (VIG) is a ETF from Vanguard (US) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is a ETF from Vanguard (US). Over the past year VIG returned +20.98% while VTIP returned +3.01%. Year to date, VIG is up 12.07% versus a gain of 1.87% for VTIP.
Over three years, VIG compounded at +16.55% per year against +5.37% for VTIP; over five years the annualized figures are +10.94% and +3.39% respectively. Across the full 14-year window we track, VIG has the edge at +8.69% annualized vs +1.58%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VIG has been the more volatile fund, with annualized monthly volatility of 13.3% 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 -48.2% for VIG and -7.1% for VTIP. 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 0.46. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VIG charges 0.04% per year while VTIP charges 0.03%. On a $10,000 position that is $4 vs $3 annually, a gap of $1 per year that compounds over a long holding period. On income, VIG currently yields 1.79% against 3.60% for VTIP.
Holdings Overlap
VIG and VTIP share 0 holdings out of 354 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, VIG or VTIP?
VIG has an expense ratio of 0.04% while VTIP charges 0.03%. VTIP is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VIG or VTIP?
Over the past year VIG returned +20.98% vs +3.01% for VTIP, so VIG leads on 1-year performance. Over the longest common window we track (14 years), VIG annualized +8.69% vs +1.58% for VTIP. Past performance does not guarantee future results.
Which is riskier, VIG or VTIP?
VIG has been the more volatile fund at 13.3% annualized versus 2.4% for VTIP. Worst drawdown: VIG -48.2% vs VTIP -7.1%.
Should I hold both VIG and VTIP?
VIG and VTIP have a monthly-return correlation of 0.46, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VIG and VTIP?
VIG and VTIP share 0 common holdings with a 0.0% weight overlap. Combined, they hold 354 unique securities.
Which pays a higher dividend, VIG or VTIP?
VIG yields 1.79% while VTIP yields 3.60%, so VTIP currently pays the higher dividend yield.
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