TIP vs VTIP Stock Comparison: AI Score, Valuation, Performance and Upside
TIP and VTIP sit in related but distinct corners of the ETF landscape — TIP centers on broad-duration inflation protection via TIPS, while VTIP focuses on low-duration inflation protection with less rate risk than broad TIPS funds. Investors choosing between them should weigh how each fund's strategy lines up with their own goals rather than assuming they're interchangeable.
Choosing between TIP and VTIP comes down to which specific exposure — broad-duration inflation protection via TIPS or low-duration inflation protection with less rate risk than broad TIPS funds — better matches the role you want this holding to play in a diversified portfolio.
VTIP holds the edge across 4 of 5 key metrics in this comparison. VTIP has delivered stronger 1-year price return (+1.38% vs -1.28% for TIP).
- want broad-duration inflation protection via TIPS
- prefer iShares (BlackRock)'s approach and fund lineup
- value principal adjusts with CPI, directly hedging inflation risk
- are comfortable with can lose value in real terms if inflation falls or real rates rise
- want low-duration inflation protection with less rate risk than broad TIPS funds
- prefer Vanguard's approach and fund lineup
- value lower interest-rate sensitivity than full-duration TIPS funds like TIP
- are comfortable with lower real-return potential than longer-duration TIPS
| Metric | TIP | VTIP |
|---|---|---|
| ETF scorei | 32.0 | 39.0 |
| Latest closei | $105.27 | $49.31 |
| 1M returni | -2.08% | -0.94% |
| 6M returni | -1.22% | +0.18% |
| 1Y returni | -1.28% | +1.38% |
The ETF score weights long-term returns and risk-adjusted performance most heavily, but still rewards low expense ratios, larger fund size, and broader diversification — so it can favor low-cost, broad, mega-cap funds over smaller thematic or actively-managed funds even when the latter have delivered stronger returns.
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | TIP | VTIP |
|---|---|---|
| 1Y ago | $10.33K (+3.3%) started 2025-09-18 | $10.57K (+5.7%) started 2025-09-18 |
| 5Y ago | $12.33K (+23.3%) started 2021-09-20 | $14.52K (+45.2%) started 2021-09-20 |
| 10Y ago | $17.8K (+78.0%) started 2016-09-19 | $18.97K (+89.7%) started 2016-09-19 |
Hypothetical — past performance does not guarantee future results.
| Metric | TIP | VTIP |
|---|---|---|
| Expense ratioi | 0.18% | 0.03% |
| Total assets (AUM)i | $15.01B | $73.17B |
| Dividend yieldi | 4.98% | 4.15% |
| Trailing P/Ei | N/A | N/A |
| Betai | 0.29 | 0.10 |
| 52-week change | -1.28% | 1.38% |
| Metric | TIP | VTIP |
|---|---|---|
| 1Y returni | -1.28% | +1.38% |
| 6M returni | -1.22% | +0.18% |
| 1M returni | -2.08% | -0.94% |
| 1Y Sharpe ratio | -1.70 | -2.01 |
| Betai | 0.29 | 0.10 |
| Dividend yieldi | 4.98% | 4.15% |
| 5Y CAGR | -0.13% | +2.91% |
Over the past year, TIP and VTIP have moved strongly in the same direction (correlation of 0.79), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | TIP | VTIP |
|---|---|---|---|
| 1Y | Growthi | -1.28% | +1.38% |
| CAGRi | -1.28% | +1.38% | |
| Volatilityi | 3.37% | 1.55% | |
| Sharpe ratioi | -1.70 | -2.01 | |
| Sortino ratioi | -2.17 | -2.48 | |
| Max drawdowni | 2.76% | 1.08% | |
| Current drawdowni | 2.76% | 1.08% | |
| Avg drawdowni | 0.75% | 0.19% | |
| Ulcer Indexi | 0.90% | 0.27% | |
| Max daily dropi | 0.80% | 0.46% | |
| Max wkly dropi | 1.45% | 0.76% | |
| 5Y | Growthi | -0.63% | +15.40% |
| CAGRi | -0.13% | +2.91% | |
| Volatilityi | 6.19% | 2.77% | |
| Sharpe ratioi | -0.72 | -0.57 | |
| Sortino ratioi | -0.99 | -0.79 | |
| Max drawdowni | 14.51% | 5.50% | |
| Current drawdowni | 2.76% | 1.08% | |
| Avg drawdowni | 6.36% | 1.11% | |
| Ulcer Indexi | 7.68% | 1.74% | |
| Max daily dropi | 1.68% | 0.99% | |
| Max wkly dropi | 3.72% | 1.67% | |
| 10Y | Growthi | +24.53% | +34.45% |
| CAGRi | +2.22% | +3.01% | |
| Volatilityi | 5.72% | 2.74% | |
| Sharpe ratioi | -0.37 | -0.55 | |
| Sortino ratioi | -0.52 | -0.76 | |
| Max drawdowni | 14.51% | 6.27% | |
| Current drawdowni | 2.76% | 1.08% | |
| Avg drawdowni | 3.71% | 0.70% | |
| Ulcer Indexi | 5.52% | 1.29% | |
| Max daily dropi | 2.87% | 1.81% | |
| Max wkly dropi | 6.87% | 5.49% |
| Category | TIP | VTIP |
|---|---|---|
| Fund name | iShares TIPS Bond ETF | Vanguard Short-Term Inflation-Protected Securities Index Fund ETF Shares |
| Type | ETF | ETF |
| Expense ratioi | 0.18% | 0.03% |
| Total assets (AUM)i | $15.01B | $73.17B |
| Dividend yieldi | 4.98% | 4.15% |
- Principal adjusts with CPI, directly hedging inflation risk
- Backed by full Treasury credit quality
- Broad maturity range for diversified inflation protection
- Lower interest-rate sensitivity than full-duration TIPS funds like TIP
- Still directly hedges CPI inflation via principal adjustments
- Vanguard's low expense ratio
- Can lose value in real terms if inflation falls or real rates rise
- Longer average duration adds more rate sensitivity than short TIPS funds
- Underperforms nominal Treasuries when inflation expectations are falling
- Lower real-return potential than longer-duration TIPS
- Still underperforms if inflation expectations fall
- Minimal capital appreciation compared to nominal short-term bonds
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