VOE vs VTIP

Quick Verdict

VTIP has a lower expense ratio. VOE delivered stronger 1-year returns. VOE offers more diversification with 169 holdings.

Lower Fees: VTIPHigher Returns: VOEMore Diversified: VOE

Side-by-Side Comparison

MetricVOEVTIPWinner
Expense Ratio0.05%0.03%
AUM$22.9B$19.3B
Dividend Yield2.31%3.60%
Holdings17727
YTD Return+16.86%+1.87%
1Y Return+26.22%+3.01%
3Y Return (annualized)+16.12%+5.37%
5Y Return (annualized)+10.19%+3.39%
Volatility (annualized)17.6%2.4%
Max Drawdown-63.4%-7.1%
Fund FamilyVanguard (US)Vanguard (US)
CategoryEquityFixed Income
InceptionAug 17, 2006Oct 12, 2012

VOE vs VTIP Performance

Vanguard Mid-Cap Value ETF (VOE) is a ETF from Vanguard (US) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is a ETF from Vanguard (US). Over the past year VOE returned +26.22% while VTIP returned +3.01%. Year to date, VOE is up 16.86% versus a gain of 1.87% for VTIP.

Over three years, VOE compounded at +16.12% per year against +5.37% for VTIP; over five years the annualized figures are +10.19% and +3.39% respectively. Across the full 14-year window we track, VOE has the edge at +7.95% annualized vs +1.58%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VOE has been the more volatile fund, with annualized monthly volatility of 17.6% 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 -63.4% for VOE 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VOE charges 0.05% per year while VTIP charges 0.03%. On a $10,000 position that is $5 vs $3 annually, a gap of $2 per year that compounds over a long holding period. On income, VOE currently yields 2.31% against 3.60% for VTIP.

Holdings Overlap

0.0%overlap

VOE and VTIP share 0 holdings out of 192 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, VOE or VTIP?

VOE has an expense ratio of 0.05% while VTIP charges 0.03%. VTIP is the cheaper option. On a $10,000 investment, that is $2 per year of difference.

Which performed better, VOE or VTIP?

Over the past year VOE returned +26.22% vs +3.01% for VTIP, so VOE leads on 1-year performance. Over the longest common window we track (14 years), VOE annualized +7.95% vs +1.58% for VTIP. Past performance does not guarantee future results.

Which is riskier, VOE or VTIP?

VOE has been the more volatile fund at 17.6% annualized versus 2.4% for VTIP. Worst drawdown: VOE -63.4% vs VTIP -7.1%.

Should I hold both VOE and VTIP?

VOE and VTIP have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VOE and VTIP?

VOE and VTIP share 0 common holdings with a 0.0% weight overlap. Combined, they hold 192 unique securities.

Which pays a higher dividend, VOE or VTIP?

VOE yields 2.31% while VTIP yields 3.60%, so VTIP currently pays the higher dividend yield.

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