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Relative Intelligence · Treasury Bonds

How Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) compares with the whole market and its popular alternatives

Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on VTIP alone. It places VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) against 14 popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where VTIP stands in the market, and of the alternatives worth a closer look.

Period covered: VTIP's full trading record, from October 2012 through September 2026. The crash tests reach back to 2000 using older funds and the S&P 500. All returns include reinvested dividends. Data as of October 20, 2026.

Data as of October 20, 2026. Full tables and charts read best on a larger screen.

Rank the market against VTIP →Chart VTIP vs. 14 alternatives →
On this page12 sections

Key findings

How much would $10,000 in VTIP have grown?

This chart tracks a hypothetical $10,000 investment in VTIP over the past 13 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of VTIP over the same span and VTIP's popular alternatives, among those that traded for the entire period. A second view covers the past 5 years, the period the better options further down the page are judged on. It shows not only where each investment ended up but also how smooth or uneven the path was.

Note: VTIP began trading on October 16, 2012, so the chart cannot reach back to the dot-com bust, the 2008 financial crisis or two other sell-offs. It covers the most recent 13 years of VTIP's record, starting at the end of September 2013.

Choose a period

From the end of September 2013 to the end of September 2026. The scale is logarithmic, so equal steps up the chart are equal percentage gains. Hover over a fund in the key to pick out its line. 1,878 of the 2,311 stocks and funds worth at least $500 million that traded the whole period ended ahead of VTIP; the chart shows 5, closest alternatives first. The other 3 lines are popular alternatives, shown for context.

$10,000$100,000$1M2013201520172019202120232025$10,000$100,000$1M20132016201920222025
  • NVDA$6M+62,911% total · +64.2% a year
  • SPY (S&P 500)$56,474+465% total · +14.2% a year
  • FLTR$14,448+44.5% total · +2.9% a year
  • FLOT$13,804+38.0% total · +2.5% a year
  • TIPX$13,739+37.4% total · +2.5% a year
  • NEAR$13,522+35.2% total · +2.3% a year
  • VTIP$13,347+33.5% total · +2.2% a year
  • STIP$13,323+33.2% total · +2.2% a year
  • TDTT$13,006+30.1% total · +2.0% a year
  • VGSH$12,090+20.9% total · +1.5% a year
Change the dates or add tickers to this chart in EasyCompare

From the end of September 2021 to the end of September 2026. Hover over a fund in the key to pick out its line. 2,250 of the 3,628 stocks and funds worth at least $500 million that traded the whole period ended ahead of VTIP; the chart shows 5, closest alternatives first. The other 3 lines are popular alternatives, shown for context.

$8,000$10,000$12,000$14,000$16,000$18,000$20,000202120222023202420252026$5,000$10,000$15,000$20,000202120222023202420252026
  • SPY (S&P 500)$19,000+90.0% total · +13.7% a year
  • FLRT$13,441+34.4% total · +6.1% a year
  • JAAA$12,767+27.7% total · +5.0% a year
  • VRIG$12,539+25.4% total · +4.6% a year
  • TFLO$12,110+21.1% total · +3.9% a year
  • NEAR$12,027+20.3% total · +3.8% a year
  • SGOV$12,000+20.0% total · +3.7% a year
  • VTIP$11,376+13.8% total · +2.6% a year
  • STIP$11,341+13.4% total · +2.5% a year
  • TDTT$10,989+9.9% total · +1.9% a year
Change the dates or add tickers to this chart in EasyCompare

VTIP at a glance

This section summarizes the key facts about the fund, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout. These figures serve as the baseline for every comparison that follows.

Note: VTIP began trading on October 16, 2012, so every figure here, including its worst decline, covers only the time since then. None of them reflect the dot-com bust, the 2008 financial crisis or two other sell-offs.

The fund

Issuer
Vanguard
Began trading
October 2012
Expense ratio
0.03%per year
Assets
$73B
Category
Bonds

Returns

Past 1 year
+0.4%total return
Past 3 years
+13.9%+4.4% a year
Past 5 years
+14.0%+2.7% a year
Past 10 years
+32.7%+2.9% a year
Best calendar year
+6.1%2025
Worst calendar year
−2.9%2022
Losing years
3 of 13full calendar years

Risk

Volatility
2.9%typical yearly swing, 5 years
Sharpe ratio
0.94return per unit of risk, 5 years
Worst decline ever
−6.3%Mar 2020 to Mar 2020
From its all-time high
−1.7%below the peak

VTIP against the whole market

Where VTIP ranks among every stock and fund, and what across the market has done better.

How does VTIP rank among all ETFs?

This section ranks VTIP on return, volatility, risk-adjusted return and worst decline against every ETF worth at least $100 million with enough history. Where the comparisons with its popular alternatives show how VTIP stacks up against its peers, these rankings show where it stands in the market as a whole.

Ranked against U.S.-listed ETFs with at least $100M in assets that have enough history for each measure, so the count changes from row to row; smaller ETFs and leveraged funds are left out. Lower volatility and smaller declines rank higher.

MeasureVTIPRankStanding
1-year return+0.4%1,968 of 2,485bottom 22%
3-year return+13.9%1,802 of 1,949bottom 9%
5-year return+14.0%1,196 of 1,560bottom 24%
10-year return+32.7%783 of 958bottom 19%
Volatility, 5 years2.9%60 of 1,560top 4%
Sharpe ratio, 5 years0.94166 of 1,560top 11%
Worst decline, past 10 years−6.3%20 of 951top 2%

What has beaten VTIP on both return and risk?

Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer). VTIP sits where the dashed lines cross. Anything in the green box above and to the left earned more than VTIP with smaller swings, a better trade-off over this period on both counts. Past results are no promise, but a name in the box is worth a closer look.

Annual return is the annualized total return with dividends reinvested, and volatility the annualized swing in daily prices, both over 5 years. Labeled dots are the strongest picks from the table below and the names called out above, colored by how close they sit to VTIP; faint dots are 7 more of the 25 in the green region (the strongest, one per fund family). 3,633 stocks and funds worth at least $500 million were screened. Hover over a dot for its figures.

0.0%1.0%2.0%3.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0%Volatility over 5 years (annualized)Annual return over 5 yearsMore return, less volatility than VTIPUSFR: +4.0% a year, volatility 0.4%FLDR: +3.9% a year, volatility 1.2%TBUX: +4.1% a year, volatility 1.1%FLRN: +4.5% a year, volatility 1.7%FLTR: +4.8% a year, volatility 2.1%RAVI: +3.8% a year, volatility 1.4%FLUD: +3.9% a year, volatility 1.4%VTIP: +2.7% a year, volatility 2.9%SGOV: +3.8% a year, volatility 0.3%VGSH: +1.9% a year, volatility 2.0%NEAR: +3.9% a year, volatility 1.4%SPSB: +2.8% a year, volatility 2.0%JAAA: +5.1% a year, volatility 1.7%VRIG: +4.7% a year, volatility 1.3%FLRT: +6.0% a year, volatility 2.3%FLOT: +4.5% a year, volatility 1.8%VNLA: +4.0% a year, volatility 1.1%USTB: +3.6% a year, volatility 2.0%TFLO: +3.9% a year, volatility 0.4%VTIPSGOVVGSHNEARSPSBJAAAVRIGFLRTFLOTVNLAUSTB0.0%1.0%2.0%3.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0%Volatility over 5 years (annualized)Annual return over 5 yearsMore return, less volatility than VTIPUSFR: +4.0% a year, volatility 0.4%FLDR: +3.9% a year, volatility 1.2%TBUX: +4.1% a year, volatility 1.1%FLRN: +4.5% a year, volatility 1.7%FLTR: +4.8% a year, volatility 2.1%RAVI: +3.8% a year, volatility 1.4%FLUD: +3.9% a year, volatility 1.4%VTIP: +2.7% a year, volatility 2.9%SGOV: +3.8% a year, volatility 0.3%VGSH: +1.9% a year, volatility 2.0%NEAR: +3.9% a year, volatility 1.4%SPSB: +2.8% a year, volatility 2.0%JAAA: +5.1% a year, volatility 1.7%VRIG: +4.7% a year, volatility 1.3%FLRT: +6.0% a year, volatility 2.3%FLOT: +4.5% a year, volatility 1.8%VNLA: +4.0% a year, volatility 1.1%USTB: +3.6% a year, volatility 2.0%TFLO: +3.9% a year, volatility 0.4%VTIPSGOVVGSHNEARSPSBJAAAVRIGFLRTFLOTVNLAUSTBTFLO
  • Popular alternatives
  • Same and neighboring categories, and shared themes
  • The whole market
  • Others in the green region
  • 1 with more than 1.6× VTIP's volatility is in the table only

Is there a better investment than VTIP?

Investments that beat VTIP over the past 5 years on return, volatility, drawdowns, consistency, crash losses or fees, from its popular alternatives out to the whole market.

How this works

The table below lists investments that beat VTIP over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes, and, for funds, the same exposure at a lower expense ratio. It checks VTIP's popular alternatives first, then the rest of its own and neighboring categories, then every stock and fund worth at least $500 million, and shows the strongest few in each group. The full list of those with a higher return and lower volatility than VTIP follows the table.

Annual return is the annualized total return with dividends reinvested. Annual return, volatility and the Sharpe ratio cover 5 years; the worst decline covers the past 10 years. Green marks a better figure than VTIP's. "On the frontier" means no other option shown or tested earned more with less volatility. Funds that hold the same thing are shown once. Beyond the popular alternatives, nothing with more than 1.5× VTIP's volatility counts as better.

These figures cover the past 5 years. Green marks a better figure than VTIP's.

Screen the whole market against VTIP for any period in BetterThanSPYOpen these 11 in EasyCompare
InvestmentWhy it is betterPast 5 yearsDownsideLong runFit
Annual return?higher is betterVolatility?lower is calmerSharpe?return per unit of riskWorst decline?past 10 years10Y returntotalCorr. with VTIP?lower diversifies moreExpenseper year
VTIPVanguard Short-Term Inflation-Protected Securities ETF · this page
+2.7%2.9%0.94−6.3%+32.7%1.000.03%
SPYState Street SPDR S&P 500 ETF · S&P 500
+12.7%17.1%0.79−33.7%+321%0.550.09%
Popular alternativesbest 2 shownThe investments people most often weigh against VTIP. 4 of 13 passed at least one test.
SGOViShares 0-3 Month Treasury Bond ETF · Treasury Bonds
On the frontierHigher return, lower volatilityHigher Sharpe, smaller worst decline+3.8%0.3%13.25−0.3%—0.190.09%
VGSHVanguard Short-Term Treasury ETF · Treasury Bonds
Similar return, lower volatility+1.9%2.0%0.95−5.6%+18.8%0.750.03%
Same and neighboring categories, and shared themesbest 2 shownEverything else in Treasury Bonds and the categories next to it (Investment Grade Bonds, Short-Term Bonds, Mortgage-Backed Securities), plus VTIP's specific themes. 14 of 48 passed at least one test.
NEARiShares Short Duration Bond Active ETF · Short-Term Bonds
Higher return, lower volatilityHigher return in most periods+3.9%1.4%2.71−9.6%+31.8%0.480.25%
SPSBState Street SPDR Portfolio Short Term Corporate Bond ETF · Investment Grade Bonds
Similar return, lower volatilityHigher return in most periods+2.8%2.0%1.38−11.8%+29.2%0.750.04%
The whole marketbest 6 shownEvery other stock and fund worth at least $500 million. 27 of 3,573 passed at least one test.
JAAAJanus Henderson AAA CLO ETF · CLO Bonds
On the frontierHigher return, lower volatilityHigher return in most periods+5.1%1.7%2.98−2.6%—0.130.20%
VRIGInvesco Variable Rate Investment Grade ETF · Bonds
On the frontierHigher return, lower volatilityHigher return in most periods+4.7%1.3%3.51−13.1%+40.5%0.120.30%
FLRTPacer Aristotle Pacific Floating Rate High Income ETF · Financials
On the frontierHigher return, lower volatilityHigher return in most periods+6.0%2.3%2.55−21.0%+58.0%0.340.60%
FLOTiShares Floating Rate Bond ETF · Floating Rate Bonds
Higher return, lower volatilityHigher return in most periods+4.5%1.8%2.48−13.5%+35.9%0.140.15%
VNLAJanus Henderson Short Duration Income ETF · Bonds
Higher return, lower volatilityHigher return in most periods+4.0%1.1%3.77−4.5%—0.470.25%
USTBVictoryShares Short-Term Bond ETF · Bonds
Similar return, lower volatilityHigher return in most periods+3.6%2.0%1.73−5.3%—0.670.34%
What these numbers mean for VTIP
Annual return
VTIP returned 2.7% a year over the past 5 years with dividends reinvested, against 12.7% a year for the S&P 500. At that pace, $10,000 became about $11,400. Annual return is the steady yearly rate that would produce the same total result, so investments held over the same span compare fairly. Guide: What is performance and return? →
Volatility
VTIP's volatility over the past 5 years was 2.9%, 17% of the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, VTIP's return lands within 2.9% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump. Guide: Understanding and measuring risk (volatility) →
Sharpe ratio
VTIP's Sharpe ratio over the past 5 years was 0.94, against 0.79 for the S&P 500, so VTIP earned more for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings. Guide: Balancing reward with risk (Sharpe ratio) →
Worst decline
VTIP's worst fall from a peak to a low over the past 10 years was 6.3%, against 33.7% for the S&P 500. Losses and gains are not symmetric: climbing back from a 6.3% fall takes a 6.7% gain. Guide: Market crash risk and tail risk →
Correlation
Over the past 5 years, VTIP's monthly returns had a correlation of 0.55 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They often move together: some diversification next to an index fund, but not a cushion. In the table, the correlation column measures each option against VTIP instead: the lower it is, the more that option would diversify a VTIP holding. Guide: Correlation and diversification →
Show all 25 stocks and funds worth at least $500 million that earned more than VTIP with less volatility

Out of 3,633 tested over 5 years. The strongest 13 are listed, best first, with funds that hold the same thing listed once.

#InvestmentFound inAnnual returnVolatilitySharpeWorst decline10Y returnCorr. with VTIPExpense
1
USFRWisdomTree Floating Rate Treasury Fund · Treasury Bonds
Same or nearby category+4.0%0.4%9.69−0.8%+28.2%-0.010.15%
2
JAAAJanus Henderson AAA CLO ETF · CLO Bonds
Whole market+5.1%1.7%2.98−2.6%—0.130.20%
3
VRIGInvesco Variable Rate Investment Grade ETF · Bonds
Whole market+4.7%1.3%3.51−13.1%+40.5%0.120.30%
4
FLRTPacer Aristotle Pacific Floating Rate High Income ETF · Financials
Whole market+6.0%2.3%2.55−21.0%+58.0%0.340.60%
5
FLOTiShares Floating Rate Bond ETF · Floating Rate Bonds
Whole market+4.5%1.8%2.48−13.5%+35.9%0.140.15%
6
VNLAJanus Henderson Short Duration Income ETF · Bonds
Whole market+4.0%1.1%3.77−4.5%—0.470.25%
7
FLDRFidelity Low Duration Bond Factor ETF · Bonds
Whole market+3.9%1.2%3.09−12.2%—0.510.15%
8
TBUXT. Rowe Price Ultra Short-Term Bond ETF · Bonds
Whole market+4.1%1.1%3.85−1.8%—0.440.17%
9
FLRNState Street SPDR Bloomberg Investment Grade Floating Rate ETF · Bonds
Whole market+4.5%1.7%2.58−14.7%+35.9%0.200.15%
10
NEARiShares Short Duration Bond Active ETF · Short-Term Bonds
Same or nearby category+3.9%1.4%2.71−9.6%+31.8%0.480.25%
11
FLTRVanEck IG Floating Rate ETF · Multi-Asset
Whole market+4.8%2.1%2.20−17.8%+41.8%0.030.14%
12
RAVINorthern Trust Ultra-Short Fixed Income ETF · Bonds
Whole market+3.8%1.4%2.61−3.7%+30.8%0.350.26%
13
FLUDFranklin Ultra Short Bond ETF · Bonds
Whole market+3.9%1.4%2.74−1.7%—0.360.15%

VTIP against its popular alternatives

The investments people most often weigh against VTIP, compared period by period and year by year.

How do VTIP's risk and return compare with its alternatives?

This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings. Investments toward the upper left earned more for a smoother ride, and those toward the lower right earned less for a rougher one. The dashed lines cross at VTIP, which divides the map into what did better or worse on each measure.

Green points earned more than VTIP with less volatility; red points earned less with more. Hover over a point for its figures. Total returns with dividends reinvested, annualized.

0.0%2.5%5.0%7.5%10.0%12.5%15.0%17.5%−10.0%−5.0%0.0%5.0%10.0%15.0%Volatility over 5 years (annualized)Annual return over 5 yearsHigher return, lower volatilityLower return, higher volatilityVTIP: 2.7% a year, volatility 2.9%SPY (S&P 500): 12.7% a year, volatility 17.1%TFLO: 4.0% a year, volatility 0.4%SGOV: 3.8% a year, volatility 0.3%TDTT: 2.0% a year, volatility 3.7%TIPX: 1.5% a year, volatility 4.7%IVOL: −6.1% a year, volatility 13.0%SCHP: 0.1% a year, volatility 6.1%SPIP: −0.2% a year, volatility 6.6%TIP: −0.1% a year, volatility 6.2%LTPZ: −7.9% a year, volatility 15.9%STIP: 2.6% a year, volatility 2.8%VGSH: 1.9% a year, volatility 2.0%SHY: 1.8% a year, volatility 2.0%BSV: 1.7% a year, volatility 2.8%VTIPSPY (S&P 500)TFLOTDTTTIPXIVOLSCHPTIPLTPZSTIPVGSHBSV0.0%5.0%10.0%15.0%20.0%−10.0%−5.0%0.0%5.0%10.0%15.0%Volatility over 5 years (annualized)Annual return over 5 yearsHigher return, lower volatilityLower return, higher volatilityVTIP: 2.7% a year, volatility 2.9%SPY (S&P 500): 12.7% a year, volatility 17.1%TFLO: 4.0% a year, volatility 0.4%SGOV: 3.8% a year, volatility 0.3%TDTT: 2.0% a year, volatility 3.7%TIPX: 1.5% a year, volatility 4.7%IVOL: −6.1% a year, volatility 13.0%SCHP: 0.1% a year, volatility 6.1%SPIP: −0.2% a year, volatility 6.6%TIP: −0.1% a year, volatility 6.2%LTPZ: −7.9% a year, volatility 15.9%STIP: 2.6% a year, volatility 2.8%VGSH: 1.9% a year, volatility 2.0%SHY: 1.8% a year, volatility 2.0%BSV: 1.7% a year, volatility 2.8%VTIPSPY (S&P 500)TFLOTDTTTIPXIVOLSCHPSPIPLTPZ
All figures
InvestmentAnnual returnVolatility
SPY S&P 500State Street SPDR S&P 500 ETF+12.7%17.1%
TFLO iShares Treasury Floating Rate Bond ETF+4.0%0.4%
SGOV iShares 0-3 Month Treasury Bond ETF+3.8%0.3%
VTIP This pageVanguard Short-Term Inflation-Protected Securities ETF+2.7%2.9%
STIP iShares 0-5 Year TIPS Bond ETF+2.6%2.8%
TDTT Northern Trust iBoxx 3-Year Target Duration TIPS ETF+2.0%3.7%
VGSH Vanguard Short-Term Treasury ETF+1.9%2.0%
SHY iShares 1-3 Year Treasury Bond ETF+1.8%2.0%
BSV Vanguard Short-Term Bond ETF+1.7%2.8%
TIPX State Street SPDR Bloomberg 1-10 Year TIPS ETF+1.5%4.7%
SCHP Schwab US TIPS ETF+0.1%6.1%
TIP iShares TIPS Bond ETF−0.1%6.2%
SPIP State Street SPDR Portfolio TIPS ETF−0.2%6.6%
IVOL Quadratic Interest Rate Volatility and Inflation Hedge ETF−6.1%13.0%
LTPZ PIMCO 15+ Year U.S. TIPS Index Exchange-Traded Fund−7.9%15.9%
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Has VTIP consistently beaten its popular alternatives?

This section compares VTIP with the investments people most often weigh against it, checking each one over eight periods from one month to ten years. Counting how often an alternative earned more than VTIP helps separate lasting outperformance from a single strong stretch.

A green cell means the alternative earned more than VTIP over that period. "Qualified" marks those that did so in at least 3 of 5 short-term periods and 2 of 3 long-term periods.

InvestmentPeriods outperformed Short termLong termRisk · 5 yearsFund
1M3M6MYTD1Y3Y5Y10YVolatilitylower is calmerSharpehigher is betterWorst declinepast 10 yearsExpenseAssetsOverlapsame sectors
VTIP Vanguard Short-Term Inflation-Protected Securities ETF (this page)—+0.5%−0.1%−1.2%+0.4%+0.4%+13.9%+14.0%+32.7%2.9%0.94−6.3%0.03%$73B—
TFLO BondsiShares Treasury Floating Rate Bond ETF4/5 short1/3 long+0.3%+1.0%+2.0%+3.1%+4.0%+14.3%+21.4%+28.0%0.4%10.49−0.2%0.15%$7.2B—
SGOV BondsiShares 0-3 Month Treasury Bond ETF4/5 short1/3 long+0.3%+0.6%+1.5%+2.6%+3.4%+13.8%+20.3%—0.3%13.25−0.3%0.09%$116B—
STIP BondsiShares 0-5 Year TIPS Bond ETF3/5 short1/3 long+0.5%−0.1%+0.2%+1.7%+1.7%+14.8%+13.7%+32.4%2.8%0.94−6.5%0.03%$17B—
TDTT BondsNorthern Trust iBoxx 3-Year Target Duration TIPS ETF3/5 short1/3 long+0.5%−0.5%−0.4%+1.0%+0.9%+14.5%+10.3%+29.8%3.7%0.55−8.1%0.19%$2.5B—
TIPX BondsState Street SPDR Bloomberg 1-10 Year TIPS ETF0/5 short1/3 long+0.2%−1.1%−1.3%+0.2%0.0%+14.9%+7.7%+30.2%4.7%0.35−10.1%0.15%$2.1B—
VGSH BondsVanguard Short-Term Treasury ETF2/5 short0/3 long+0.3%−0.1%0.0%+0.6%+1.2%+12.5%+9.9%+18.8%2.0%0.95−5.6%0.03%$40B—
SHY BondsiShares 1-3 Year Treasury Bond ETF2/5 short0/3 long+0.3%−0.2%−0.1%+0.5%+1.1%+12.1%+9.3%+17.7%2.0%0.89−5.7%0.15%$27B—
BSV BondsVanguard Short-Term Bond ETF1/5 short0/3 long+0.1%−0.4%−0.5%+0.1%+0.7%+14.1%+8.8%+20.5%2.8%0.63−8.5%0.03%$70B—
IVOL BondsQuadratic Interest Rate Volatility and Inflation Hedge ETF1/5 short0/3 long+3.7%−1.7%−7.5%−9.2%−10.3%−11.3%−26.9%—13.0%-0.42−32.3%1.02%$223M—
SCHP BondsSchwab US TIPS ETF0/5 short0/3 long−0.2%−1.6%−2.0%−0.6%−1.4%+13.9%+0.5%+25.0%6.1%0.05−14.3%0.03%$16B—
SPIP BondsState Street SPDR Portfolio TIPS ETF0/5 short0/3 long−0.2%−1.7%−2.1%−0.8%−1.6%+13.5%−1.0%+23.8%6.6%0.00−15.4%0.12%$1.0B—
TIP BondsiShares TIPS Bond ETF0/5 short0/3 long−0.2%−1.7%−2.1%−0.7%−1.5%+13.3%−0.3%+23.5%6.2%0.02−14.5%0.18%$14B—
LTPZ BondsPIMCO 15+ Year U.S. TIPS Index Exchange-Traded Fund0/5 short0/3 long−2.3%−3.9%−6.0%−5.6%−9.1%+5.2%−33.7%−6.8%15.9%-0.44−41.1%0.20%$1.0B—
DFIP BondsDimensional - Inflation-Protected Securities ETF0/5 short0/3 long−0.2%−1.9%−2.5%−1.0%−1.7%+14.3%————−14.9%0.11%$1.1B—
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How did VTIP do year by year?

This table shows each investment's total return in every full calendar year since 2013, along with where VTIP ranked among its popular alternatives each year. Annual results reveal how consistently each one kept pace with VTIP and how far its good and bad years diverged, detail that multiyear averages tend to smooth over.

Note: VTIP began trading on October 16, 2012, so the table starts with 2013, its first full calendar year, and cannot show how it fared during the dot-com bust, the 2008 financial crisis or two other sell-offs.

Newest year first. Green marks a year in which the fund came out ahead of VTIP; gray means the two finished within a fraction of a point. The rank row places VTIP among the alternatives that traded the full year; dark green is the top quarter and red the bottom quarter.

InvestmentYears ahead of VTIP2025202420232022202120202019201820172016201520142013
VTIP This pageVanguard Short-Term Inflation-Protected Securities ETF—+6.0%+4.7%+4.6%−2.9%+5.3%+5.0%+4.9%+0.6%+0.8%+2.4%+0.2%−1.4%−1.5%
Rank among alternativesTop quarter in 3 of 137 of 143 of 144 of 143 of 148 of 149 of 139 of 125 of 128 of 128 of 126 of 1210 of 114 of 10
SPY S&P 500State Street SPDR S&P 500 ETF11 of 13+17.7%+24.9%+26.2%−18.2%+28.7%+18.3%+31.2%−4.6%+21.7%+12.0%+1.2%+13.5%+32.3%
TFLO iShares Treasury Floating Rate Bond ETF4 of 11+4.2%+5.3%+5.1%+2.0%0.0%+0.5%+2.0%+1.8%+1.0%−0.1%+0.7%——
SGOV iShares 0-3 Month Treasury Bond ETF2 of 5+4.2%+5.3%+5.1%+1.6%+0.1%————————
STIP iShares 0-5 Year TIPS Bond ETF0 of 13+6.0%+4.7%+4.2%−4.1%+5.7%+5.1%+4.9%+0.4%+0.5%+2.7%−0.1%−1.2%−1.8%
TDTT Northern Trust iBoxx 3-Year Target Duration TIPS ETF4 of 13+6.7%+3.4%+4.4%−5.7%+5.5%+6.7%+5.5%0.0%−0.1%+3.3%−0.5%−1.8%−2.1%
TIPX State Street SPDR Bloomberg 1-10 Year TIPS ETF6 of 12+7.1%+3.1%+4.4%−7.5%+5.4%+8.5%+6.6%−0.3%+2.5%+4.2%+0.7%+0.5%—
VGSH Vanguard Short-Term Treasury ETF3 of 13+5.1%+4.0%+4.3%−3.8%−0.6%+3.1%+3.5%+1.6%0.0%+1.1%+0.5%+0.5%+0.3%
SHY iShares 1-3 Year Treasury Bond ETF3 of 13+5.0%+3.9%+4.2%−3.9%−0.7%+3.0%+3.4%+1.5%+0.3%+0.8%+0.4%+0.4%+0.2%
BSV Vanguard Short-Term Bond ETF4 of 13+6.0%+3.8%+4.9%−5.5%−1.1%+4.7%+5.0%+1.3%+1.2%+1.3%+0.9%+1.3%+0.1%
IVOL Quadratic Interest Rate Volatility and Inflation Hedge ETF2 of 6+12.1%−11.1%−5.1%−12.7%−0.3%+14.6%———————
SCHP Schwab US TIPS ETF7 of 13+6.8%+1.9%+3.9%−12.0%+5.9%+10.8%+8.6%−1.5%+3.1%+4.6%−1.8%+4.1%−8.9%
SPIP State Street SPDR Portfolio TIPS ETF6 of 13+6.8%+2.4%+2.9%−12.8%+5.8%+11.4%+9.1%−1.5%+3.1%+4.7%−2.2%+4.5%−9.4%
TIP iShares TIPS Bond ETF6 of 13+6.8%+1.7%+3.8%−12.3%+5.7%+10.8%+8.4%−1.4%+2.9%+4.7%−1.8%+3.6%−8.5%
LTPZ PIMCO 15+ Year U.S. TIPS Index Exchange-Traded Fund6 of 13+4.0%−5.3%+0.4%−31.9%+7.0%+24.1%+17.1%−7.4%+8.7%+8.7%−9.0%+19.7%−19.3%
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Risk and diversification

How VTIP has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.

What were VTIP's worst declines?

A drawdown is the decline from a peak to the lowest point before a new high. This section presents VTIP's two deepest drawdowns since it began trading in 2012, alongside the S&P 500's return over the same dates, and how long each took to recover. Together, these figures show how much an investor could have lost and how long it took to get back to even.

Note: VTIP began trading on October 16, 2012, so this list cannot include the dot-com bust, the 2008 financial crisis or two other sell-offs. The crash tests on this page show how older funds and the S&P 500 fared through those years.

Green means VTIP fell less than the S&P 500 over the same dates. Based on daily closing prices with dividends reinvested.

DuringVTIP fellS&P 500, same datesPeakLowTime to the lowBack at the peakTime to recover
Covid crash−6.3%−20.6%Mar 2020Mar 2020Under a monthJun 20203 months
2022 bear market−5.5%−14.0%Mar 2022Sep 20226 monthsDec 202315 months

How did VTIP do in stock market crashes?

This section measures how far VTIP, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000. A smaller decline means an investment held up better, and comparing results across crashes shows whether that resilience was consistent or a one-off.

Note: VTIP began trading on October 16, 2012, so its row reads "Not yet trading" for the dot-com bust, the 2008 financial crisis or two other sell-offs. The older alternatives and the S&P 500 show how those crashes played out.

Newest crash first. Each figure is the fund's deepest fall within the crash window; green means a smaller fall than VTIP.

InvestmentHeld up better2023 regional bank crisisMar 20232022 bear marketJan 2022Covid crashFeb 2020Late-2018 sell-offSep 2018February 2018 volatility shockFeb 20182015 China and oil sell-offAug 20152011 euro debt crisisJul 20112010 flash crashMay 20102008 financial crisisOct 2007Dot-com bustMar 2000
VTIP This pageVanguard Short-Term Inflation-Protected Securities ETF—0.0%−5.5%−6.3%−0.7%−0.3%−1.1%Not yet tradingNot yet tradingNot yet tradingNot yet trading
SPY S&P 500State Street SPDR S&P 500 ETF0 of 6−3.4%−24.5%−33.7%−19.3%−6.5%−12.8%−17.9%−1.5%−55.2%−47.5%
TFLO iShares Treasury Floating Rate Bond ETF3 of 60.0%−0.1%−0.1%−0.1%−0.1%−0.8%————
SGOV iShares 0-3 Month Treasury Bond ETF1 of 20.0%0.0%————————
STIP iShares 0-5 Year TIPS Bond ETF1 of 60.0%−6.5%−5.3%−0.8%−0.2%−1.1%−1.6%———
TDTT Northern Trust iBoxx 3-Year Target Duration TIPS ETF0 of 60.0%−8.1%−6.6%−0.9%−0.5%−1.4%————
TIPX State Street SPDR Bloomberg 1-10 Year TIPS ETF0 of 60.0%−10.1%−7.9%−1.2%−0.6%−2.4%————
VGSH Vanguard Short-Term Treasury ETF2 of 60.0%−4.6%−0.5%−0.2%−0.1%−0.7%−0.3%0.0%——
SHY iShares 1-3 Year Treasury Bond ETF2 of 60.0%−4.7%−0.7%−0.2%−0.1%−0.7%−0.2%−0.1%−2.2%—
BSV Vanguard Short-Term Bond ETF1 of 60.0%−6.9%−4.7%−0.3%−0.2%−1.0%−0.5%−0.1%−7.0%—
IVOL Quadratic Interest Rate Volatility and Inflation Hedge ETF0 of 30.0%−17.4%−8.0%———————
SCHP Schwab US TIPS ETF0 of 60.0%−14.3%−10.8%−1.9%−1.0%−2.6%−3.6%———
SPIP State Street SPDR Portfolio TIPS ETF0 of 60.0%−14.9%−10.7%−2.1%−1.3%−2.8%−3.6%−0.1%−14.3%—
TIP iShares TIPS Bond ETF0 of 60.0%−14.3%−11.2%−2.0%−1.1%−2.5%−3.8%−0.2%−14.4%—
LTPZ PIMCO 15+ Year U.S. TIPS Index Exchange-Traded Fund0 of 60.0%−34.0%−22.6%−7.0%−3.1%−6.8%−6.0%−1.1%——
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How closely does VTIP move with the S&P 500?

Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell. An investment that captures more of the gains than the losses has compounded ahead of the market over time. This section compares VTIP with its popular alternatives on both measures, and on beta (how strongly each has moved with the market), over the past 10 years.

Monthly total returns over the past 10 years, measured against SPY. 100% capture or a beta of 1.00 means moving in line with the S&P 500. Green marks a better figure than VTIP's: more upside, less downside or a higher capture ratio. Sorted by capture ratio.

InvestmentUpside captureDownside captureCapture ratioBeta
VTIP This pageVanguard Short-Term Inflation-Protected Securities ETF11%3%3.490.08
STIP iShares 0-5 Year TIPS Bond ETF11%4%2.850.08
BSV Vanguard Short-Term Bond ETF7%3%2.750.04
TDTT Northern Trust iBoxx 3-Year Target Duration TIPS ETF12%7%1.710.11
TIPX State Street SPDR Bloomberg 1-10 Year TIPS ETF14%10%1.360.13
SCHP Schwab US TIPS ETF15%17%0.910.18
SPIP State Street SPDR Portfolio TIPS ETF15%17%0.880.18
TIP iShares TIPS Bond ETF15%17%0.870.18
LTPZ PIMCO 15+ Year U.S. TIPS Index Exchange-Traded Fund21%50%0.420.40
TFLO iShares Treasury Floating Rate Bond ETF6%-5%—0.00
VGSH Vanguard Short-Term Treasury ETF5%-1%—0.01
SHY iShares 1-3 Year Treasury Bond ETF5%-1%—0.01
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What diversifies VTIP?

Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions). This section lists large ETFs and stocks whose returns have had a low correlation with VTIP's. Because such investments tend not to fall at the same time, pairing VTIP with them can reduce a portfolio's overall swings.

Only ETFs with at least $1.0B in assets and stocks worth at least $10B, with a correlation below 0.5 over the past 5 years and a positive return, are included, ranked by Sharpe ratio; funds that hold the same thing are shown once. The year columns are the years in which VTIP lost money. The last two columns show a portfolio that is 80% VTIP and 20% the other investment, rebalanced monthly.

ETFs

InvestmentCorrelation5Y returnSharpe20222014201380/20 mix volatility80/20 mix annual return
VTIP Vanguard Short-Term Inflation-Protected Securities ETF (this page)1.00+14.0%0.94−2.9%−1.4%−1.5%2.9%+2.6%
LVHI InternationalFranklin International Low Volatility High Dividend Index ETF0.45+119%1.48+3.8%——3.6%+5.4%
DXJ InternationalWisdomTree Japan Hedged Equity Fund0.18+225%1.34+6.0%+8.1%+41.3%3.7%+7.2%
BUFD Multi-AssetFT Vest Laddered Deep Buffer ETF0.47+45.4%1.01−7.7%——3.2%+3.7%
PWV Broad MarketInvesco Large Cap Value ETF0.47+88.7%0.97−1.2%+12.3%+32.6%4.5%+4.9%
MLPX EnergyGlobal X - MLP & Energy Infrastructure ETF0.45+135%0.97+21.5%+16.2%—5.2%+6.2%
SMH TechnologyVanEck Semiconductor ETF0.41+323%0.97−33.5%+30.2%+33.4%8.2%+9.8%
GLD CommoditiesSPDR Gold Shares0.38+126%0.96−0.8%−2.2%−28.3%4.8%+5.8%
SPMO Broad MarketInvesco S&P 500 Momentum ETF0.43+136%0.93−10.4%——5.5%+6.5%

Stocks

InvestmentCorrelation5Y returnSharpe20222014201380/20 mix volatility80/20 mix annual return
VTIP Vanguard Short-Term Inflation-Protected Securities ETF (this page)1.00+14.0%0.94−2.9%−1.4%−1.5%2.9%+2.6%
CAH Medical - DistributionCardinal Health, Inc.0.12+479%1.55+54.1%+23.0%+66.0%6.0%+9.4%
CLS Hardware, Equipment & PartsCelestica Inc.0.17+3,143%1.47+1.3%+12.9%+27.6%12.3%+21.6%
FIX Engineering & ConstructionComfort Systems USA, Inc.0.26+1,636%1.46+17.0%−10.4%+61.7%9.8%+17.7%
MCK Medical - DistributionMcKesson Corporation0.09+413%1.44+51.8%+29.3%+67.7%5.7%+8.9%
MPC Oil & Gas Refining & MarketingMarathon Petroleum Corporation0.14+690%1.41+86.6%+0.4%+48.6%7.2%+11.4%
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Common questions

What was VTIP's worst drawdown?

VTIP's deepest decline since it began trading in 2012 was 6.3%, in March 2020. It took three months from the low to climb back to its old high. Because VTIP launched in October 2012, that record does not include the dot-com bust, the 2008 financial crisis or two other sell-offs.

What were VTIP's best and worst years?

Over 13 full calendar years, VTIP's best year was 2025, when it returned 6.1%. Its worst was 2022, with a return of -2.9%.

Is there a better investment than VTIP?

Among VTIP's popular alternatives, SGOV earned more than VTIP with less volatility over the past 5 years: 3.8% a year at 0.3% volatility, against 2.7% a year at 2.9%. Looking beyond its popular alternatives, NEAR (short-term bonds) earned more than VTIP with less volatility over the past 5 years: 3.9% a year at 1.4% volatility, against 2.7% a year at 2.9%.

Is VTIP more volatile than the S&P 500?

No. VTIP's volatility over the past 5 years was 2.9%, 17% of the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, VTIP's return lands within 2.9% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.

What is VTIP's Sharpe ratio?

VTIP's Sharpe ratio over the past 5 years was 0.94, against 0.79 for the S&P 500, so VTIP earned more for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.

How correlated is VTIP with the S&P 500?

Over the past 5 years, VTIP's monthly returns had a correlation of 0.55 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They often move together: some diversification next to an index fund, but not a cushion. In the table, the correlation column measures each option against VTIP instead: the lower it is, the more that option would diversify a VTIP holding.

What are the best alternatives to VTIP?

None of the 14 popular alternatives we compared outperformed VTIP in at least 3 of 5 short-term and 2 of 3 long-term timeframes, which says more about VTIP's strength than about its alternatives.

Did VTIP outperform the S&P 500?

VTIP finished ahead of the S&P 500 (SPY) in two of 13 full calendar years. In 2025, it returned +6.1%, against +17.7% for the index.

How did VTIP do in stock market crashes?

VTIP fell less than the S&P 500 (SPY) in six of the six major crashes it has traded through, and further in no. The clearest case was the Covid crash, when VTIP fell 6.3% and the S&P 500 fell 33.7%.

What diversifies VTIP?

These had a low correlation with VTIP over the past 5 years and still earned a positive 5-year return: among large ETFs, LVHI (correlation 0.45), DXJ (correlation 0.18) and BUFD (correlation 0.47); among large stocks, CAH (correlation 0.12), CLS (correlation 0.17) and FIX (correlation 0.26). A correlation near zero means the two have moved largely independently.

How we measure

More research

Popular alternatives to VTIP

Other stocks and ETFs