VNQ vs VTIP
Vanguard Real Estate ETF vs Vanguard Short-Term Inflation-Protected Securities ETF
Which is better, VNQ or VTIP?
Each has led over a different period.
VTIP has a lower expense ratio. VNQ led over 1Y, 3Y and the full window, VTIP over 5Y.
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 | VNQ | VTIP |
|---|---|---|
| Expense Ratio | 0.13% | 0.03%Best |
| AUM | $39.3B | $19.8B |
| Dividend Yield | 3.49% | 4.16% |
| Holdings | 144 | 25 |
| YTD Return | +11.34%Best | +1.98% |
| 1Y Return | +10.62%Best | +2.35% |
| 3Y Return (annualized) | +10.12%Best | +5.45% |
| 5Y Return (annualized) | +1.10% | +3.28%Best |
| Volatility (annualized) | 16.9% | 2.4%Best |
| Max Drawdown | -42.8% | -7.1%Best |
| $10,000 over 5 years | $10,562 | $11,751Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Fixed Income |
| Style | Mid Cap Blend | - |
| Inception | Sep 23, 2004 | Oct 12, 2012 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Oct 16, 2012 to Sep 3, 2026 (13.9 years).
VNQ vs VTIP growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 13.9 years both funds cover.
VNQ vs VTIP Performance
Vanguard Real Estate ETF (VNQ) is an ETF from Vanguard (US) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is an ETF from Vanguard (US). Over the past year VNQ returned +10.62% while VTIP returned +2.35%. Year to date, VNQ is up 11.34% versus a gain of 1.98% for VTIP.
Over three years, VNQ compounded at +10.12% per year against +5.45% for VTIP; over five years the annualized figures are +1.10% and +3.28% respectively. Across the full 14-year window we track, VNQ has the edge at +4.36% annualized vs +1.58%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VNQ has been the more volatile fund, with annualized monthly volatility of 16.9% 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 -42.8% for VNQ and -7.1% 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 0.53. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VNQ charges 0.13% per year while VTIP charges 0.03%. On a $10,000 position that is $13 vs $3 annually, a gap of $10 per year that compounds over a long holding period. On income, VNQ currently yields 3.49% against 4.16% for VTIP.
Holdings Overlap
We hold position weights for 144 holdings in VNQ and 23 in VTIP, totalling 99.5% and 88.6% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 144 positions we hold weights for in VNQ and 23 in VTIP, against full books of 144 and 25.
You are not choosing between two funds in isolation.
Whichever of VNQ 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, VNQ or VTIP?
VNQ has an expense ratio of 0.13% while VTIP charges 0.03%. VTIP is the cheaper option, by $10 a year on a $10,000 investment.
Which performed better, VNQ or VTIP?
Over the past year VNQ returned +10.62% vs +2.35% for VTIP, so VNQ leads on 1-year performance. Over the longest common window we track (14 years), VNQ annualized +4.36% vs +1.58% for VTIP. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VNQ or VTIP?
VNQ has been the more volatile fund at 16.9% annualized versus 2.4% for VTIP. Worst drawdown: VNQ -42.8% vs VTIP -7.1%.
Should I hold both VNQ and VTIP?
VNQ and VTIP have a monthly-return correlation of 0.53, 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, VNQ or VTIP?
VNQ yields 3.49% while VTIP yields 4.16%, so VTIP currently pays the higher dividend yield.
Is VTIP better than VNQ?
VTIP has a lower expense ratio. VNQ led over 1Y, 3Y and the full window, VTIP over 5Y. Which one suits a particular account depends on what it is for. This is information, not a recommendation.