VTIP vs VV
VTIP vs VV
Vanguard Short-Term Inflation-Protected Securities ETF vs Vanguard Large-Cap ETF
Quick Verdict
VV delivered stronger 1-year returns. VV offers more diversification with 431 holdings.
Side-by-Side Comparison
| Metric | VTIP | VV | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $19.3B | $52.5B | |
| Dividend Yield | 3.60% | 1.25% | |
| Holdings | 27 | 446 | |
| YTD Return | +1.87% | +13.62% | |
| 1Y Return | +3.01% | +23.22% | |
| 3Y Return (annualized) | +5.37% | +21.70% | |
| 5Y Return (annualized) | +3.39% | +12.98% | |
| Volatility (annualized) | 2.4% | 14.8% | |
| Max Drawdown | -7.1% | -56.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 12, 2012 | Jan 27, 2004 |
VTIP vs VV Performance
Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is a ETF from Vanguard (US) and Vanguard Large-Cap ETF (VV) is a ETF from Vanguard (US). Over the past year VTIP returned +3.01% while VV returned +23.22%. Year to date, VTIP is up 1.87% versus a gain of 13.62% for VV.
Over three years, VTIP compounded at +5.37% per year against +21.70% for VV; over five years the annualized figures are +3.39% and +12.98% respectively. Across the full 14-year window we track, VV has the edge at +9.53% annualized vs +1.58%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VV has been the more volatile fund, with annualized monthly volatility of 14.8% 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 -56.0% for VV. 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 VV charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VTIP currently yields 3.60% against 1.25% for VV.
Holdings Overlap
VTIP and VV share 0 holdings out of 454 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 VV?
VTIP has an expense ratio of 0.03% while VV charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, VTIP or VV?
Over the past year VTIP returned +3.01% vs +23.22% for VV, so VV leads on 1-year performance. Over the longest common window we track (14 years), VTIP annualized +1.58% vs +9.53% for VV. Past performance does not guarantee future results.
Which is riskier, VTIP or VV?
VV has been the more volatile fund at 14.8% annualized versus 2.4% for VTIP. Worst drawdown: VTIP -7.1% vs VV -56.0%.
Should I hold both VTIP and VV?
VTIP and VV 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 VV?
VTIP and VV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 454 unique securities.
Which pays a higher dividend, VTIP or VV?
VTIP yields 3.60% while VV yields 1.25%, so VTIP currently pays the higher dividend yield.
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