VIPIX vs VTIP
Vanguard Inflation Protected Securities Fund Insti Shs vs Vanguard Short-Term Inflation-Protected Securities ETF
Quick Verdict
VTIP has a lower expense ratio. VTIP delivered stronger 1-year returns. VIPIX offers more diversification with 55 holdings.
Side-by-Side Comparison
| Metric | VIPIX | VTIP | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.03% | |
| AUM | $12.5B | $19.3B | |
| Dividend Yield | 3.54% | 3.60% | |
| Holdings | 63 | 27 | |
| YTD Return | -0.86% | +1.87% | |
| 1Y Return | -3.03% | +3.01% | |
| 3Y Return (annualized) | -0.67% | +5.37% | |
| 5Y Return (annualized) | -4.70% | +3.39% | |
| Volatility (annualized) | 6.7% | 2.4% | |
| Max Drawdown | -24.5% | -7.1% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | Dec 12, 2003 | Oct 12, 2012 |
VIPIX vs VTIP Performance
Vanguard Inflation Protected Securities Fund Insti Shs (VIPIX) is a mutual fund from Vanguard (US) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is a ETF from Vanguard (US). Over the past year VIPIX returned -3.03% while VTIP returned +3.01%. Year to date, VIPIX is down 0.86% versus a gain of 1.87% for VTIP.
Over three years, VIPIX compounded at -0.67% per year against +5.37% for VTIP; over five years the annualized figures are -4.70% and +3.39% respectively. Across the full 5-year window we track, VTIP has the edge at +1.58% annualized vs -4.70%. 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 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 -24.5% for VIPIX 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VIPIX charges 0.07% per year while VTIP 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 3.60% for VTIP.
Holdings Overlap
VIPIX and VTIP share 21 holdings out of 57 unique holdings combined, representing a 45.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VIPIX | Weight in VTIP | Difference |
|---|---|---|---|
| TII 1.625 04/15/30 | 3.04% | 5.49% | 2.45% |
| TII 1.625 10/15/29 | 2.95% | 5.31% | 2.36% |
| TII 2.125 04/15/29 | 2.87% | 5.12% | 2.25% |
| TII 2.375 10/15/28 | Pro | Pro | Pro |
| TII 1.625 10/15/27 | Pro | Pro | Pro |
| TII 0.125 04/15/27 | Pro | Pro | Pro |
| TII 1.25 04/15/28 | Pro | Pro | Pro |
| TII 0.125 01/15/31 | Pro | Pro | Pro |
| TII 0.125 07/15/30 | Pro | Pro | Pro |
| TII 0.5 01/15/28 | Pro | Pro | Pro |
Frequently Asked Questions
Which is cheaper, VIPIX or VTIP?
VIPIX has an expense ratio of 0.07% while VTIP charges 0.03%. VTIP is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, VIPIX or VTIP?
Over the past year VIPIX returned -3.03% vs +3.01% for VTIP, so VTIP leads on 1-year performance. Over the longest common window we track (5 years), VIPIX annualized -4.70% vs +1.58% for VTIP. Past performance does not guarantee future results.
Which is riskier, VIPIX or VTIP?
VIPIX has been the more volatile fund at 6.7% annualized versus 2.4% for VTIP. Worst drawdown: VIPIX -24.5% vs VTIP -7.1%.
Should I hold both VIPIX and VTIP?
VIPIX and VTIP have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VIPIX and VTIP?
VIPIX and VTIP share 21 common holdings with a 45.5% weight overlap. Combined, they hold 57 unique securities.
Which pays a higher dividend, VIPIX or VTIP?
VIPIX yields 3.54% while VTIP yields 3.60%, so VTIP currently pays the higher dividend yield.
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