VIPIX vs VUG
Vanguard Inflation Protected Securities Fund Insti Shs vs Vanguard Growth ETF
Quick Verdict
VUG has a lower expense ratio. VUG delivered stronger 1-year returns. VUG offers more diversification with 146 holdings.
Side-by-Side Comparison
| Metric | VIPIX | VUG | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.03% | |
| AUM | $12.5B | $223.2B | |
| Dividend Yield | 3.54% | 0.47% | |
| Holdings | 63 | 155 | |
| YTD Return | -1.07% | +10.98% | |
| 1Y Return | -3.04% | +16.82% | |
| 3Y Return (annualized) | -0.43% | +24.53% | |
| 5Y Return (annualized) | -4.84% | +13.10% | |
| Volatility (annualized) | 6.7% | 16.5% | |
| Max Drawdown | -24.5% | -51.4% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 12, 2003 | Jan 26, 2004 |
VIPIX vs VUG Performance
Vanguard Inflation Protected Securities Fund Insti Shs (VIPIX) is a mutual fund from Vanguard (US) and Vanguard Growth ETF (VUG) is a ETF from Vanguard (US). Over the past year VIPIX returned -3.04% while VUG returned +16.82%. Year to date, VIPIX is down 1.07% versus a gain of 10.98% for VUG.
Over three years, VIPIX compounded at -0.43% per year against +24.53% for VUG; over five years the annualized figures are -4.84% and +13.10% respectively. Across the full 5-year window we track, VUG has the edge at +11.31% annualized vs -4.84%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VUG has been the more volatile fund, with annualized monthly volatility of 16.5% 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 -51.4% for VUG. 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VIPIX charges 0.07% per year while VUG 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 0.47% for VUG.
Holdings Overlap
VIPIX and VUG share 0 holdings out of 201 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 VUG?
VIPIX has an expense ratio of 0.07% while VUG charges 0.03%. VUG is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, VIPIX or VUG?
Over the past year VIPIX returned -3.04% vs +16.82% for VUG, so VUG leads on 1-year performance. Over the longest common window we track (5 years), VIPIX annualized -4.84% vs +11.31% for VUG. Past performance does not guarantee future results.
Which is riskier, VIPIX or VUG?
VUG has been the more volatile fund at 16.5% annualized versus 6.7% for VIPIX. Worst drawdown: VIPIX -24.5% vs VUG -51.4%.
Should I hold both VIPIX and VUG?
VIPIX and VUG have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VIPIX and VUG?
VIPIX and VUG share 0 common holdings with a 0.0% weight overlap. Combined, they hold 201 unique securities.
Which pays a higher dividend, VIPIX or VUG?
VIPIX yields 3.54% while VUG yields 0.47%, so VIPIX currently pays the higher dividend yield.
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