VIPIX vs VNQ
Vanguard Inflation Protected Securities Fund Insti Shs vs Vanguard Real Estate ETF
Quick Verdict
VIPIX has a lower expense ratio. VNQ delivered stronger 1-year returns. VNQ offers more diversification with 144 holdings.
Side-by-Side Comparison
| Metric | VIPIX | VNQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.13% | |
| AUM | $12.4B | $39.3B | |
| Dividend Yield | 5.21% | 3.49% | |
| Holdings | 63 | 144 | |
| YTD Return | -0.86% | +13.46% | |
| 1Y Return | -2.83% | +13.14% | |
| 3Y Return (annualized) | -0.18% | +11.55% | |
| 5Y Return (annualized) | -4.75% | +2.33% | |
| Volatility (annualized) | 6.7% | 21.4% | |
| Max Drawdown | -24.5% | -75.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 12, 2003 | Sep 23, 2004 |
VIPIX vs VNQ Performance
Vanguard Inflation Protected Securities Fund Insti Shs (VIPIX) is a mutual fund from Vanguard (US) and Vanguard Real Estate ETF (VNQ) is a ETF from Vanguard (US). Over the past year VIPIX returned -2.83% while VNQ returned +13.14%. Year to date, VIPIX is down 0.86% versus a gain of 13.46% for VNQ.
Over three years, VIPIX compounded at -0.18% per year against +11.55% for VNQ; over five years the annualized figures are -4.75% and +2.33% respectively. Across the full 5-year window we track, VNQ has the edge at +4.13% annualized vs -4.75%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VNQ has been the more volatile fund, with annualized monthly volatility of 21.4% compared with 6.7% for VIPIX. 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 -24.5% for VIPIX and -75.8% for VNQ. 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VIPIX charges 0.07% per year while VNQ charges 0.13%. On a $10,000 position that is $7 vs $13 annually, a gap of $6 per year that compounds over a long holding period. On income, VIPIX currently yields 5.21% against 3.49% for VNQ.
Holdings Overlap
VIPIX and VNQ share 0 holdings out of 199 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, VIPIX or VNQ?
VIPIX has an expense ratio of 0.07% while VNQ charges 0.13%. VIPIX is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, VIPIX or VNQ?
Over the past year VIPIX returned -2.83% vs +13.14% for VNQ, so VNQ leads on 1-year performance. Over the longest common window we track (5 years), VIPIX annualized -4.75% vs +4.13% for VNQ. Past performance does not guarantee future results.
Which is riskier, VIPIX or VNQ?
VNQ has been the more volatile fund at 21.4% annualized versus 6.7% for VIPIX. Worst drawdown: VIPIX -24.5% vs VNQ -75.8%.
Should I hold both VIPIX and VNQ?
VIPIX and VNQ have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VIPIX and VNQ?
VIPIX and VNQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 199 unique securities.
Which pays a higher dividend, VIPIX or VNQ?
VIPIX yields 5.21% while VNQ yields 3.49%, so VIPIX currently pays the higher dividend yield.
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