VTIP: Vanguard Short-Term Inflation-Protected Securities ETF returns, drawdowns and risk
Funds on government bonds whose principal rises with inflation (TIPS in the US, linkers in Europe).
Data updated October 2026
VTIP · US exchange · USDCategory: Inflation-linked bond ETFsData from October 2012
From October 2012 to October 2026 VTIP returned 2.2% a year on average with dividends reinvested, in US dollars: $10,000 invested at the start grew to $13,647.
Its deepest fall was 6.3%, from March 2022 to December 2022, and it took about 21 months to get back to the previous high. Annual volatility was 2.8%; at the last close it was at or near its high.
Against AGG (iShares Core U.S. Aggregate Bond ETF), over the 168 months both have data, the correlation of monthly returns was 0.62: they moved together only in part. Beta was 0.31. In months when AGG rose, VTIP moved 45% as much on average; in months when AGG fell, 16% as much.
Key figures
- Annual return (CAGR)
- +2.2%
- 1-year return
- +1.7%
- 5 years, a year
- +3.0%
- 10 years, a year
- +3.1%
- Annual volatility
- 2.8%
- Maximum drawdown
- −6.3%
- Sharpe ratio
- 0.21
- Worst year
- 2022: −2.9%
Trailing returns
| Period | VTIP | AGG |
|---|---|---|
| 1 year | +1.7% | −1.9% |
| 3 years, a year | +5.1% | +5.2% |
| 5 years, a year | +3.0% | −0.3% |
| 10 years, a year | +3.1% | +1.2% |
To the last close of October 2026. Periods longer than a year are annualised.
Growth of $10,000: VTIP vs AGG
Month-end values from November 2012, the first month both funds have data.
VTIP drawdowns
Percentage below the previous high, weekly.
Returns by calendar year
| Year | VTIP | AGG |
|---|---|---|
| 2026(partial) | +1.7% | −1.8% |
| 2025 | +6.1% | +7.2% |
| 2024 | +4.7% | +1.3% |
| 2023 | +5.2% | +5.7% |
| 2022 | −2.9% | −13.0% |
| 2021 | +5.4% | −1.8% |
| 2020 | +5.0% | +7.5% |
| 2019 | +5.2% | +8.5% |
| 2018 | +0.6% | +0.1% |
| 2017 | +0.8% | +3.5% |
| 2016 | +2.5% | +2.4% |
| 2015 | +0.2% | +0.5% |
| 2014 | −1.4% | +6.0% |
| 2013 | −1.5% | −2.0% |
| 2012(partial) | +0.6% | — |
VTIP compared
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.
Sharpe ratio uses the return of short-term government bills in the same currency as the risk-free rate. The growth chart uses month-end values; drawdowns and volatility use daily closes.
Questions
What is the average annual return of VTIP?
From October 2012 to October 2026 VTIP returned 2.2% a year on average (CAGR) with dividends reinvested, in USD. Over the last 5 years: +3.0% a year. Over the last 12 months: +1.7%.
What was the worst drawdown of VTIP?
6.3%, from March 2022 to December 2022; it took about 21 months from the previous high to get back to it.
How volatile is VTIP?
Annual volatility was 2.8% over the period. Its worst month was −2.9% and 63% of months were positive. Worst calendar year: 2022 (−2.9%).
How closely does VTIP follow AGG?
Over 168 months the correlation of monthly returns was 0.62, so they moved together only in part, with a beta of 0.31.
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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.