VT vs VTIP
VT vs VTIP
Vanguard Total World Stock ETF vs Vanguard Short-Term Inflation-Protected Securities ETF
Quick Verdict
VTIP has a lower expense ratio. VT delivered stronger 1-year returns. VT offers more diversification with 8927 holdings.
Side-by-Side Comparison
| Metric | VT | VTIP | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.03% | |
| AUM | $77.6B | $19.3B | |
| Dividend Yield | 1.61% | 3.60% | |
| Holdings | 10,133 | 27 | |
| YTD Return | +14.19% | +1.87% | |
| 1Y Return | +25.25% | +3.01% | |
| 3Y Return (annualized) | +20.36% | +5.37% | |
| 5Y Return (annualized) | +11.17% | +3.39% | |
| Volatility (annualized) | 16.6% | 2.4% | |
| Max Drawdown | -50.6% | -7.1% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Jun 24, 2008 | Oct 12, 2012 |
VT vs VTIP Performance
Vanguard Total World Stock ETF (VT) 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 VT returned +25.25% while VTIP returned +3.01%. Year to date, VT is up 14.19% versus a gain of 1.87% for VTIP.
Over three years, VT compounded at +20.36% per year against +5.37% for VTIP; over five years the annualized figures are +11.17% and +3.39% respectively. Across the full 14-year window we track, VT has the edge at +7.37% annualized vs +1.58%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VT has been the more volatile fund, with annualized monthly volatility of 16.6% 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 -50.6% for VT 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VT charges 0.06% per year while VTIP charges 0.03%. On a $10,000 position that is $6 vs $3 annually, a gap of $3 per year that compounds over a long holding period. On income, VT currently yields 1.61% against 3.60% for VTIP.
Holdings Overlap
VT and VTIP share 0 holdings out of 8950 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, VT or VTIP?
VT has an expense ratio of 0.06% while VTIP charges 0.03%. VTIP is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, VT or VTIP?
Over the past year VT returned +25.25% vs +3.01% for VTIP, so VT leads on 1-year performance. Over the longest common window we track (14 years), VT annualized +7.37% vs +1.58% for VTIP. Past performance does not guarantee future results.
Which is riskier, VT or VTIP?
VT has been the more volatile fund at 16.6% annualized versus 2.4% for VTIP. Worst drawdown: VT -50.6% vs VTIP -7.1%.
Should I hold both VT and VTIP?
VT and VTIP have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VT and VTIP?
VT and VTIP share 0 common holdings with a 0.0% weight overlap. Combined, they hold 8950 unique securities.
Which pays a higher dividend, VT or VTIP?
VT yields 1.61% while VTIP yields 3.60%, so VTIP currently pays the higher dividend yield.
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