VIPIX vs VTIP
Vanguard Inflation Protected Securities Fund Insti Shs vs Vanguard Short-Term Inflation-Protected Securities ETF
Which is better, VIPIX or VTIP?
VTIP costs less.
VTIP has a lower expense ratio.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VIPIX | VTIP |
|---|---|---|
| Expense Ratio | 0.07% | 0.03%Best |
| AUM | $12.4B | $19.8B |
| Dividend Yield | 5.21% | 4.16% |
| Holdings | 81 | 25 |
| YTD Price Return | -2.57% | -0.28% |
| 1Y Price Return | -5.99% | -2.72% |
| 3Y Price Return (annualized) | -0.90% | +1.32% |
| 5Y Price Return (annualized) | -5.19% | -1.30% |
| Volatility (annualized) | 6.6% | 3.3%Best |
| Max Drawdown | -24.2% | -11.4%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Fixed Income |
| Style | Inflation Protection | - |
| Inception | Dec 12, 2003 | Oct 12, 2012 |
Not shown on this pair: $10,000 over 5 years, Top 10 Weight.
A price return is not the return of a fund that pays its income out. The coupon or distribution never appears in the price, so the return rows carry no winner here. VIPIX currently yields 5.21% and VTIP 4.16%.
Volatility and max drawdown are measured over the window both funds cover: Sep 20, 2021 to Sep 18, 2026 (5 years).
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 an ETF from Vanguard (US). Over the past year VIPIX's price moved -5.99% and VTIP's -2.72%, before the income each one paid out.
Over three years, VIPIX compounded at -0.90% per year against +1.32% for VTIP; over five years the annualized figures are -5.19% and -1.30% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VIPIX has been the more volatile fund, with annualized monthly volatility of 6.6% compared with 3.3% 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 -24.2% for VIPIX and -11.4% for VTIP. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.82. 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 5.21% against 4.16% for VTIP.
Structure and taxes
VIPIX is a mutual fund and VTIP is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
We hold position weights for 52 holdings in VIPIX and 24 in VTIP, totalling 74.3% and 89.6% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 19 positions appear in both.
19 positions in common, counted across the 52 positions we hold weights for in VIPIX and 24 in VTIP, against full books of 81 and 25.
Top Shared Holdings
| Stock | Weight in VIPIX | Weight in VTIP | Difference |
|---|---|---|---|
| TII 1.625 04/15/30Treasury (Cpi) Note 1.63% Apr 15, 2030 | 2.95% | 5.14% | 2.19% |
| TII 1.625 10/15/29United States Of America Notes Fixed 1.625% 1.625% 10/15/2029 | 2.94% | 5.04% | 2.10% |
| TII 2.375 10/15/28Treasury (Cpi) Note 2.38% Oct 15, 2028 | 2.79% | 4.85% | 2.06% |
| TII 2.125 04/15/29Treasury (Cpi) Note 2.13% Apr 15, 2029 | 2.72% | 4.85% | 2.13% |
| TII 1.625 10/15/27United States Treasury Inflation Indexed Bonds - When Issued 1.63% 15Oct2027 | 2.70% | 4.70% | 2.00% |
| TII 0.125 01/15/30U.S. Tips 0.125% 01/15/30 | 3.39% | 3.99% | 0.60% |
| TII 1.25 04/15/28Treasury (Cpi) Note 1.25% Apr 15, 2028 | 2.64% | 4.58% | 1.94% |
| TII 0.125 07/15/31U.S. Tips 0-1/8% 07/15/31 | 2.57% | 4.41% | 1.84% |
| TII 0.125 07/15/30Us Treasury Inflation Indexed Bonds 0.125% Jul 15 30 | 2.48% | 4.29% | 1.81% |
| TII 0.5 01/15/28U.S. Treasury Inflation Indexed Bonds 0.500%, 01/15/28 | 2.39% | 4.15% | 1.76% |
You are not choosing between two funds in isolation.
Whichever of VIPIX and VTIP you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $4 a year on a $10,000 investment.
Which is riskier, VIPIX or VTIP?
VIPIX has been the more volatile fund at 6.6% annualized versus 3.3% for VTIP. Worst drawdown: VIPIX -24.2% vs VTIP -11.4%.
Should I hold both VIPIX and VTIP?
VIPIX and VTIP have a monthly-return correlation of 0.82, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VIPIX or VTIP?
VIPIX yields 5.21% while VTIP yields 4.16%, so VIPIX currently pays the higher dividend yield.
Is it better to hold VIPIX or VTIP in a taxable account?
VTIP is an ETF and VIPIX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VTIP better than VIPIX?
VTIP has a lower expense ratio. Which one suits a particular account depends on what it is for. This is information, not a recommendation.