VTIP vs VV
Vanguard Short-Term Inflation-Protected Securities ETF vs Vanguard Morningstar Large-Cap ETF
Which is better, VTIP or VV?
VV has been ahead.
VV led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VTIP | VV |
|---|---|---|
| Expense Ratio | 0.03%Tie | 0.03%Tie |
| AUM | $19.8B | $52.6B |
| Dividend Yield | 4.16% | 0.99% |
| Holdings | 25 | 437 |
| YTD Return | +1.13% | +12.38%Best |
| 1Y Return | +1.38% | +16.34%Best |
| 3Y Return (annualized) | +5.10% | +21.61%Best |
| 5Y Return (annualized) | +3.13% | +13.10%Best |
| Volatility (annualized) | 2.4%Best | 14.3% |
| Max Drawdown | -7.1%Best | -34.3% |
| $10,000 over 5 years | $11,666 | $18,506Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | - | Large Cap Blend |
| Inception | Oct 12, 2012 | Jan 27, 2004 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Oct 16, 2012 to Sep 18, 2026 (13.9 years).
VTIP vs VV growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
VTIP vs VV Performance
Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is an ETF from Vanguard (US) and Vanguard Morningstar Large-Cap ETF (VV) is an ETF from Vanguard (US). Over the past year VTIP returned +1.38% while VV returned +16.34%. Year to date, VTIP is up 1.13% versus a gain of 12.38% for VV.
Over three years, VTIP compounded at +5.10% per year against +21.61% for VV; over five years the annualized figures are +3.13% and +13.10% respectively. Across the full 14-year window we track, VV has the edge at +13.34% annualized vs +1.51%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VV has been the more volatile fund, with annualized monthly volatility of 14.3% 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 -7.1% for VTIP and -34.3% for VV. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.46. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VTIP charges 0.03% per year while VV charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VTIP currently yields 4.16% against 0.99% for VV.
Holdings Overlap
At least 0.2% of VV's money is in holdings VTIP also owns.
Stated as a floor: for VTIP, our book for it covers 89.6% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 24 positions we hold weights for in VTIP and 431 in VV, against full books of 25 and 437.
Top Shared Holdings
| Stock | Weight in VTIP | Weight in VV | Difference |
|---|---|---|---|
| CURVVanguard Market Liquidity Fund | 2.68% | 0.21% | 2.47% |
You are not choosing between two funds in isolation.
Whichever of VTIP and VV you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VTIP or VV?
VTIP has an expense ratio of 0.03% while VV charges 0.03%. At the precision these are quoted to, they cost the same.
Which performed better, VTIP or VV?
Over the past year VTIP returned +1.38% vs +16.34% for VV, so VV leads on 1-year performance. Over the longest common window we track (14 years), VTIP annualized +1.51% vs +13.34% for VV. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VTIP or VV?
VV has been the more volatile fund at 14.3% annualized versus 2.4% for VTIP. Worst drawdown: VTIP -7.1% vs VV -34.3%.
Should I hold both VTIP and VV?
VTIP and VV have a monthly-return correlation of 0.46, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VTIP or VV?
VTIP yields 4.16% while VV yields 0.99%, so VTIP currently pays the higher dividend yield.
Is VV better than VTIP?
VV led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.