VTI vs VTIP
Vanguard Total Stock Market ETF vs Vanguard Short-Term Inflation-Protected Securities ETF
Quick Verdict
VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | VTI | VTIP | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $663.5B | $19.3B | |
| Dividend Yield | 1.07% | 3.60% | |
| Holdings | 3,543 | 27 | |
| YTD Return | +14.16% | +1.89% | |
| 1Y Return | +23.62% | +2.97% | |
| 3Y Return (annualized) | +21.43% | +5.46% | |
| 5Y Return (annualized) | +12.33% | +3.38% | |
| Volatility (annualized) | 15.3% | 2.4% | |
| Max Drawdown | -56.6% | -7.1% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | May 24, 2001 | Oct 12, 2012 |
VTI vs VTIP Performance
Vanguard Total Stock Market ETF (VTI) 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 VTI returned +23.62% while VTIP returned +2.97%. Year to date, VTI is up 14.16% versus a gain of 1.89% for VTIP.
Over three years, VTI compounded at +21.43% per year against +5.46% for VTIP; over five years the annualized figures are +12.33% and +3.38% respectively. Across the full 14-year window we track, VTI has the edge at +8.14% annualized vs +1.58%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -56.6% for VTI 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 0.46. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VTI charges 0.03% per year while VTIP charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VTI currently yields 1.07% against 3.60% for VTIP.
Holdings Overlap
VTI and VTIP share 0 holdings out of 2806 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, VTI or VTIP?
VTI has an expense ratio of 0.03% while VTIP charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, VTI or VTIP?
Over the past year VTI returned +23.62% vs +2.97% for VTIP, so VTI leads on 1-year performance. Over the longest common window we track (14 years), VTI annualized +8.14% vs +1.58% for VTIP. Past performance does not guarantee future results.
Which is riskier, VTI or VTIP?
VTI has been the more volatile fund at 15.3% annualized versus 2.4% for VTIP. Worst drawdown: VTI -56.6% vs VTIP -7.1%.
Should I hold both VTI and VTIP?
VTI and VTIP have a monthly-return correlation of 0.46, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTI and VTIP?
VTI and VTIP share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2806 unique securities.
Which pays a higher dividend, VTI or VTIP?
VTI yields 1.07% while VTIP yields 3.60%, so VTIP currently pays the higher dividend yield.
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