TIP vs VTIP: returns, risk and drawdowns compared
iShares TIPS Bond ETF against Vanguard Short-Term Inflation-Protected Securities ETF, over the same 14 years (November 2012 to October 2026) with dividends reinvested.
Data updated October 2026
From November 2012 to October 2026, TIP returned 1.5% a year and VTIP 2.2% a year on average, so VTIP came out ahead by 0.8% a year. TIP was the more volatile of the two (5.1% against 2.3% a year), and the deepest falls from a month-end high were 13.9% for TIP and 4.6% for VTIP.
The correlation of monthly returns was 0.84: they usually moved together. Over 133 rolling 3-year periods, TIP did better in 53% and VTIP in 47%.
Side by side
| TIP | VTIP | |
|---|---|---|
| Annual return (CAGR) | +1.5% | +2.2% |
| Total return | +23% | +36% |
| Annual volatility | 5.1% | 2.3% |
| Maximum drawdown (month-end) | −13.9% | −4.6% |
| Worst month | −6.7% | −2.9% |
| Best month | +4.8% | +2.0% |
| Positive months | 59% | 63% |
| Best year | 2020: +10.9% | 2025: +6.1% |
| Worst year | 2022: −12.3% | 2022: −2.9% |
| 1-year return | −1.6% | +1.7% |
| 5 years, a year | −0.1% | +3.0% |
| 10 years, a year | +2.1% | +3.1% |
| Trading currency | USD | USD |
First nine rows: the same 168 months for both funds. Trailing returns: to each fund’s last close.
Growth of 10,000: TIP vs VTIP
Returns by calendar year
| Year | TIP | VTIP |
|---|---|---|
| 2025 | +6.8% | +6.1% |
| 2024 | +1.7% | +4.7% |
| 2023 | +3.8% | +5.2% |
| 2022 | −12.3% | −2.9% |
| 2021 | +5.7% | +5.4% |
| 2020 | +10.9% | +5.0% |
| 2019 | +8.3% | +5.2% |
| 2018 | −1.4% | +0.6% |
| 2017 | +2.9% | +0.8% |
| 2016 | +4.7% | +2.5% |
| 2015 | −1.8% | +0.2% |
| 2014 | +3.6% | −1.4% |
| 2013 | −8.5% | −1.5% |
How the figures are calculated
Total return in the fund’s trading currency, from end-of-day prices with dividends reinvested on the ex-date. The fund’s own ongoing charges are already reflected in its price; trading costs, taxes and currency conversion are not included. Past returns do not predict future returns.
The comparison uses only the months in which both funds have prices, so the figures cover the same period even when one fund is older.
Questions
Which has returned more, TIP or VTIP?
From November 2012 to October 2026, TIP returned +1.5% a year and VTIP +2.2% a year, with dividends reinvested. Over rolling 3-year periods TIP did better in 53% of cases. Past returns do not predict future returns.
Which is riskier, TIP or VTIP?
Over the same months annual volatility was 5.1% for TIP and 2.3% for VTIP; the deepest fall from a month-end high was 13.9% and 4.6%, and the worst single month −6.7% and −2.9%.
How correlated are TIP and VTIP?
The correlation of their monthly returns was 0.84: they usually moved together. Combining them has historically given some diversification.
More comparisons
Source: MarketStack end-of-day prices, total return with dividends reinvested. Figures are historical and descriptive; they are not forecasts and not investment advice. MEDGE Capital does not recommend buying or selling any instrument. Risk disclaimer.