VIPIX vs VTEB
Vanguard Inflation Protected Securities Fund Insti Shs vs Vanguard Tax-Exempt Bond ETF
Quick Verdict
VTEB has a lower expense ratio. VTEB delivered stronger 1-year returns. VTEB offers more diversification with 3533 holdings.
Side-by-Side Comparison
| Metric | VIPIX | VTEB | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.03% | |
| AUM | $12.5B | $46.0B | |
| Dividend Yield | 3.54% | 3.34% | |
| Holdings | 63 | 9,952 | |
| YTD Return | -1.07% | +0.62% | |
| 1Y Return | -3.24% | +5.07% | |
| 3Y Return (annualized) | -0.50% | +3.14% | |
| 5Y Return (annualized) | -4.77% | +0.61% | |
| Volatility (annualized) | 6.7% | 4.9% | |
| Max Drawdown | -24.5% | -17.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Tax Preferred | |
| Inception | Dec 12, 2003 | Aug 21, 2015 |
VIPIX vs VTEB Performance
Vanguard Inflation Protected Securities Fund Insti Shs (VIPIX) is a mutual fund from Vanguard (US) and Vanguard Tax-Exempt Bond ETF (VTEB) is a ETF from Vanguard (US). Over the past year VIPIX returned -3.24% while VTEB returned +5.07%. Year to date, VIPIX is down 1.07% versus a gain of 0.62% for VTEB.
Over three years, VIPIX compounded at -0.50% per year against +3.14% for VTEB; over five years the annualized figures are -4.77% and +0.61% respectively. Across the full 5-year window we track, VTEB has the edge at +1.27% annualized vs -4.77%. 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 4.9% for VTEB. 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 -17.0% for VTEB. 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VIPIX charges 0.07% per year while VTEB charges 0.03%. On a $10,000 position that is $7 vs $3 annually, a gap of $4 per year that compounds over a long holding period. On income, VIPIX currently yields 3.54% against 3.34% for VTEB.
Holdings Overlap
VIPIX and VTEB share 0 holdings out of 3588 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 VTEB?
VIPIX has an expense ratio of 0.07% while VTEB charges 0.03%. VTEB is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, VIPIX or VTEB?
Over the past year VIPIX returned -3.24% vs +5.07% for VTEB, so VTEB leads on 1-year performance. Over the longest common window we track (5 years), VIPIX annualized -4.77% vs +1.27% for VTEB. Past performance does not guarantee future results.
Which is riskier, VIPIX or VTEB?
VIPIX has been the more volatile fund at 6.7% annualized versus 4.9% for VTEB. Worst drawdown: VIPIX -24.5% vs VTEB -17.0%.
Should I hold both VIPIX and VTEB?
VIPIX and VTEB have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VIPIX and VTEB?
VIPIX and VTEB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3588 unique securities.
Which pays a higher dividend, VIPIX or VTEB?
VIPIX yields 3.54% while VTEB yields 3.34%, so VIPIX currently pays the higher dividend yield.
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