VTIP — Vanguard Short-Term Inflation-Protected Securities Index Fund ETF Shares

VTIP Price Performance — Growth of $10,000

Value of a $10,000 investment in VTIP over time, compared with SPY. Both lines are rebased to $10,000 on the first shared date. Based on total returns — prices are adjusted for dividends and splits, so this assumes distributions were reinvested. Hover or tap the chart for exact values.

VTIP Drawdown

The "underwater" chart: VTIP's decline from its highest prior value at each point in time. It shows how deep past losses ran and how long the fund took to recover to break-even.

Overview

The Vanguard Short-Term Inflation-Protected Securities Index Fund ETF Shares (VTIP) operates within the US Bonds - TIPS category, which currently contains 6 ETFs tracked by ETFValuer. Issued by Vanguard, this fund has accumulated $71.1 billion in assets under management and trades at a price of $49.68. It holds an overall rank of #254 out of 458 tracked ETFs across all categories and has received an ETFValuer grade of C with a score of 59.7 out of 100. The fund offers a low expense ratio of 0.03% while providing a dividend yield of 3.60%. The substantial asset size and low cost structure suggest significant investor adoption relative to the small number of peers in its specific category. These metrics position VTIP as a widely held option within the inflation-protected bond space despite its mid-tier overall ranking.

Over the last day, the fund posted a return of +0.22%, followed by a +0.12% gain over one week and a +0.14% increase over one month. A slight contraction occurred over the three-month period with a return of -0.02%, though the trend reversed positively over the subsequent six months with a +1.62% gain. Year-to-date performance stands at +1.89%, while the one-year return is recorded at +3.46%. The longer-term trajectory shows continued growth, with the three-year return reaching +16.36%. This pattern indicates a divergence where short-term fluctuations were minimal or slightly negative before accelerating into positive territory over the six-month and longer horizons.

VTIP carries a volatility label of Very Low and exhibits a beta of 0.21, indicating that its price movements are significantly less sensitive to broader market shifts than the average asset. Despite this low volatility, the fund recorded a Sharpe ratio of -0.97, suggesting that the risk-adjusted returns have been negative over the measured period. The maximum drawdown was limited to -0.98%, reflecting a relatively contained decline during market stress. This combination of a very low beta and minimal drawdown points to a defensive profile that limits downside exposure, even though the negative Sharpe ratio implies that the returns generated did not sufficiently compensate for the risks taken relative to the risk-free rate.

AI-generated summary based on the data on this page.

VTIP Top Holdings

Holdings as of 2026-03-31 per the fund's most recent SEC N-PORT-P filing. Top 10 holdings make up 50.3% of net assets — a rough gauge of concentration risk (the higher this figure, the more the fund's return depends on a handful of names). To see how VTIP's holdings overlap with other ETFs you own or are considering, check the Stock Overlap tool.

Market Backdrop

10-Year Treasury Yield: 4.61% (as of 2026-07-28) — The yield on 10-year US Treasury bonds — the standard "risk-free rate" benchmark used to contextualize this fund’s Sharpe ratio and returns.

CBOE Volatility Index (VIX): 18.21 (as of 2026-07-28) — A real-time gauge of expected S&P 500 volatility over the next 30 days — useful context for this fund’s own volatility label.

Federal Funds Rate: 3.63% (as of 2026-06-01) — The Federal Reserve’s target policy rate, which anchors short-term borrowing costs across the economy.

10-Year Breakeven Inflation Rate: 2.26% (as of 2026-07-29) — The market’s implied 10-year inflation expectation, derived from Treasury and TIPS yields — directly relevant to this fund’s inflation-protection design.

VTIP Liquidity, Domicile & Tax Treatment

Liquidity: Quoted bid/ask spread is 3.31% and average daily volume is 2.5M/day. Tighter spreads and higher volume mean lower round-trip trading costs; this is a live-market snapshot and can widen during volatile sessions. AUM of $71.1B provides ample scale, supporting tight spreads and issuer commitment to keep the fund open.

Domicile & tax treatment: VTIP is a US-domiciled, SEC-registered ('40 Act) exchange-traded fund. Dividends and capital gains distributions are reported to US investors on Form 1099-DIV, and the fund is not subject to the PFIC reporting or UCITS-specific rules that apply to Irish- or Luxembourg-domiciled funds. Non-US investors should note that US-domiciled ETFs are generally subject to 30% US withholding tax on dividends (unless reduced by treaty) and to US estate tax exposure on the position — Irish-domiciled UCITS ETFs tracking the same index often avoid both, which is why non-US residents frequently prefer the UCITS equivalent where one exists. This is general information, not tax advice — consult a tax professional for your situation.

VTIP Performance History

How VTIP Compares to Other US Bonds - TIPS ETFs