VTIP vs VTV

Quick Verdict

VTV delivered stronger 1-year returns. VTV offers more diversification with 308 holdings.

Lower Fees: TiedHigher Returns: VTVMore Diversified: VTV

Side-by-Side Comparison

MetricVTIPVTVWinner
Expense Ratio0.03%0.03%
AUM$19.3B$186.1B
Dividend Yield3.60%2.29%
Holdings27311
YTD Return+1.87%+17.56%
1Y Return+3.01%+29.46%
3Y Return (annualized)+5.37%+18.21%
5Y Return (annualized)+3.39%+12.55%
Volatility (annualized)2.4%14.5%
Max Drawdown-7.1%-61.3%
Fund FamilyVanguard (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionOct 12, 2012Jan 26, 2004

VTIP vs VTV Performance

Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is a ETF from Vanguard (US) and Vanguard Value ETF (VTV) is a ETF from Vanguard (US). Over the past year VTIP returned +3.01% while VTV returned +29.46%. Year to date, VTIP is up 1.87% versus a gain of 17.56% for VTV.

Over three years, VTIP compounded at +5.37% per year against +18.21% for VTV; over five years the annualized figures are +3.39% and +12.55% respectively. Across the full 14-year window we track, VTV has the edge at +7.59% annualized vs +1.58%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VTV has been the more volatile fund, with annualized monthly volatility of 14.5% 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 -7.1% for VTIP and -61.3% for VTV. 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VTIP charges 0.03% per year while VTV charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VTIP currently yields 3.60% against 2.29% for VTV.

Holdings Overlap

0.0%overlap

VTIP and VTV share 0 holdings out of 331 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, VTIP or VTV?

VTIP has an expense ratio of 0.03% while VTV charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.

Which performed better, VTIP or VTV?

Over the past year VTIP returned +3.01% vs +29.46% for VTV, so VTV leads on 1-year performance. Over the longest common window we track (14 years), VTIP annualized +1.58% vs +7.59% for VTV. Past performance does not guarantee future results.

Which is riskier, VTIP or VTV?

VTV has been the more volatile fund at 14.5% annualized versus 2.4% for VTIP. Worst drawdown: VTIP -7.1% vs VTV -61.3%.

Should I hold both VTIP and VTV?

VTIP and VTV have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VTIP and VTV?

VTIP and VTV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 331 unique securities.

Which pays a higher dividend, VTIP or VTV?

VTIP yields 3.60% while VTV yields 2.29%, so VTIP currently pays the higher dividend yield.

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