VTIP vs VUG
VTIP vs VUG
Vanguard Short-Term Inflation-Protected Securities ETF vs Vanguard Growth ETF
Quick Verdict
VUG delivered stronger 1-year returns. VUG offers more diversification with 146 holdings.
Side-by-Side Comparison
| Metric | VTIP | VUG | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $19.3B | $223.2B | |
| Dividend Yield | 3.60% | 0.47% | |
| Holdings | 27 | 155 | |
| YTD Return | +1.87% | +10.57% | |
| 1Y Return | +3.01% | +18.21% | |
| 3Y Return (annualized) | +5.37% | +24.26% | |
| 5Y Return (annualized) | +3.39% | +13.05% | |
| Volatility (annualized) | 2.4% | 16.5% | |
| Max Drawdown | -7.1% | -51.4% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 12, 2012 | Jan 26, 2004 |
VTIP vs VUG Performance
Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is a ETF from Vanguard (US) and Vanguard Growth ETF (VUG) is a ETF from Vanguard (US). Over the past year VTIP returned +3.01% while VUG returned +18.21%. Year to date, VTIP is up 1.87% versus a gain of 10.57% for VUG.
Over three years, VTIP compounded at +5.37% per year against +24.26% for VUG; over five years the annualized figures are +3.39% and +13.05% respectively. Across the full 14-year window we track, VUG has the edge at +11.30% annualized vs +1.58%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VUG has been the more volatile fund, with annualized monthly volatility of 16.5% 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 -51.4% for VUG. 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
VTIP charges 0.03% per year while VUG charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VTIP currently yields 3.60% against 0.47% for VUG.
Holdings Overlap
VTIP and VUG share 0 holdings out of 169 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 VUG?
VTIP has an expense ratio of 0.03% while VUG charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, VTIP or VUG?
Over the past year VTIP returned +3.01% vs +18.21% for VUG, so VUG leads on 1-year performance. Over the longest common window we track (14 years), VTIP annualized +1.58% vs +11.30% for VUG. Past performance does not guarantee future results.
Which is riskier, VTIP or VUG?
VUG has been the more volatile fund at 16.5% annualized versus 2.4% for VTIP. Worst drawdown: VTIP -7.1% vs VUG -51.4%.
Should I hold both VTIP and VUG?
VTIP and VUG 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 VTIP and VUG?
VTIP and VUG share 0 common holdings with a 0.0% weight overlap. Combined, they hold 169 unique securities.
Which pays a higher dividend, VTIP or VUG?
VTIP yields 3.60% while VUG yields 0.47%, so VTIP currently pays the higher dividend yield.
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