Quick Verdict

VTIP has a lower expense ratio. VOT delivered stronger 1-year returns. VOT offers more diversification with 121 holdings.

Lower Fees: VTIPHigher Returns: VOTMore Diversified: VOT

Side-by-Side Comparison

MetricVOTVTIPWinner
Expense Ratio0.05%0.03%
AUM$19.9B$19.3B
Dividend Yield0.65%3.60%
Holdings13627
YTD Return+9.25%+1.87%
1Y Return+7.07%+3.01%
3Y Return (annualized)+15.11%+5.37%
5Y Return (annualized)+5.46%+3.39%
Volatility (annualized)18.6%2.4%
Max Drawdown-60.3%-7.1%
Fund FamilyVanguard (US)Vanguard (US)
CategoryEquityFixed Income
InceptionAug 17, 2006Oct 12, 2012

VOT vs VTIP Performance

Vanguard Mid-Cap Growth ETF (VOT) 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 VOT returned +7.07% while VTIP returned +3.01%. Year to date, VOT is up 9.25% versus a gain of 1.87% for VTIP.

Over three years, VOT compounded at +15.11% per year against +5.37% for VTIP; over five years the annualized figures are +5.46% and +3.39% respectively. Across the full 14-year window we track, VOT has the edge at +9.62% annualized vs +1.58%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VOT has been the more volatile fund, with annualized monthly volatility of 18.6% 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 -60.3% for VOT 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 0.45. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VOT 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, VOT currently yields 0.65% against 3.60% for VTIP.

Holdings Overlap

0.0%overlap

VOT and VTIP share 0 holdings out of 144 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, VOT or VTIP?

VOT 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, VOT or VTIP?

Over the past year VOT returned +7.07% vs +3.01% for VTIP, so VOT leads on 1-year performance. Over the longest common window we track (14 years), VOT annualized +9.62% vs +1.58% for VTIP. Past performance does not guarantee future results.

Which is riskier, VOT or VTIP?

VOT has been the more volatile fund at 18.6% annualized versus 2.4% for VTIP. Worst drawdown: VOT -60.3% vs VTIP -7.1%.

Should I hold both VOT and VTIP?

VOT and VTIP have a monthly-return correlation of 0.45, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VOT and VTIP?

VOT and VTIP share 0 common holdings with a 0.0% weight overlap. Combined, they hold 144 unique securities.

Which pays a higher dividend, VOT or VTIP?

VOT yields 0.65% while VTIP yields 3.60%, so VTIP currently pays the higher dividend yield.

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