VIPIX vs VTBNX
Vanguard Inflation Protected Securities Fund Insti Shs vs Vanguard Total Bond Market II Index Fund Institutional Shares
Quick Verdict
VTBNX has a lower expense ratio. VTBNX delivered stronger 1-year returns. VTBNX offers more diversification with 15,623 holdings.
Side-by-Side Comparison
| Metric | VIPIX | VTBNX | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.02% | |
| AUM | $12.4B | $207.3B | |
| Dividend Yield | 5.21% | 3.79% | |
| Holdings | 63 | 15,623 | |
| YTD Return | -0.86% | -2.70% | |
| 1Y Return | -2.83% | -1.68% | |
| 3Y Return (annualized) | -0.18% | +0.65% | |
| 5Y Return (annualized) | -4.75% | -3.62% | |
| Volatility (annualized) | 6.7% | 6.3% | |
| Max Drawdown | -24.5% | -21.5% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | Dec 12, 2003 | Feb 17, 2009 |
VIPIX vs VTBNX Performance
Vanguard Inflation Protected Securities Fund Insti Shs (VIPIX) is a mutual fund from Vanguard (US) and Vanguard Total Bond Market II Index Fund Institutional Shares (VTBNX) is a mutual fund from Vanguard (US). Over the past year VIPIX returned -2.83% while VTBNX returned -1.68%. Year to date, VIPIX is down 0.86% versus a loss of 2.70% for VTBNX.
Over three years, VIPIX compounded at -0.18% per year against +0.65% for VTBNX; over five years the annualized figures are -4.75% and -3.62% respectively. Across the full 5-year window we track, VTBNX has the edge at -3.62% annualized vs -4.75%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VIPIX has been the more volatile fund, with annualized monthly volatility of 6.7% compared with 6.3% for VTBNX. 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 -21.5% for VTBNX. 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VIPIX charges 0.07% per year while VTBNX charges 0.02%. On a $10,000 position that is $7 vs $2 annually, a gap of $5 per year that compounds over a long holding period. On income, VIPIX currently yields 5.21% against 3.79% for VTBNX.
Holdings Overlap
VIPIX and VTBNX share 9 holdings out of 12774 unique holdings combined, representing a 1.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VIPIX | Weight in VTBNX | Difference |
|---|---|---|---|
| T 4 02/15/34 | 0.36% | 0.33% | 0.03% |
| T 4.625 05/31/31 | 0.51% | 0.13% | 0.38% |
| T 4.25 11/15/34 | 0.17% | 0.35% | 0.18% |
| T 4.25 08/15/35 | Pro | Pro | Pro |
| T 4.125 02/29/32 | Pro | Pro | Pro |
| T 4.625 04/30/31 | Pro | Pro | Pro |
| T 4.25 02/28/31 | Pro | Pro | Pro |
| T 3.75 08/31/31 | Pro | Pro | Pro |
| T 4.125 03/31/31 | Pro | Pro | Pro |
Frequently Asked Questions
Which is cheaper, VIPIX or VTBNX?
VIPIX has an expense ratio of 0.07% while VTBNX charges 0.02%. VTBNX is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, VIPIX or VTBNX?
Over the past year VIPIX returned -2.83% vs -1.68% for VTBNX, so VTBNX leads on 1-year performance. Over the longest common window we track (5 years), VIPIX annualized -4.75% vs -3.62% for VTBNX. Past performance does not guarantee future results.
Which is riskier, VIPIX or VTBNX?
VIPIX has been the more volatile fund at 6.7% annualized versus 6.3% for VTBNX. Worst drawdown: VIPIX -24.5% vs VTBNX -21.5%.
Should I hold both VIPIX and VTBNX?
VIPIX and VTBNX have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VIPIX and VTBNX?
VIPIX and VTBNX share 9 common holdings with a 1.2% weight overlap. Combined, they hold 12774 unique securities.
Which pays a higher dividend, VIPIX or VTBNX?
VIPIX yields 5.21% while VTBNX yields 3.79%, so VIPIX currently pays the higher dividend yield.
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