Average Daily Volume
2.11M
Fund Overview
The Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is designed to provide investors with exposure to short-term U.S. Treasury Inflation-Protected Securities (TIPS). These securities are indexed to inflation to protect investors from the erosion of purchasing power. VTIP focuses on TIPS with remaining maturities of less than five years, offering a relatively low-risk way to hedge against inflation while maintaining liquidity. The fund is passively managed and seeks to track the performance of the Bloomberg Barclays U.S. Treasury Inflation-Protected Securities 0-5 Year Index, providing a cost-effective and transparent investment option for those seeking inflation protection in the short term.
- Asset Class
-
Bond
- Industry
-
N/A
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 1.11 %
- Currency Hedged
-
No
- Portfolio Turnover
-
26 %
- Dividend Date
-
Why Invest in the VTIP ETF?
Potential Benefits
- Provides inflation protection by investing in short-term TIPS, which adjust principal and interest payments based on inflation.
- Lower interest rate risk compared to longer-duration TIPS funds due to its focus on short-term maturities.
- Low expense ratio, making it a cost-effective option for inflation-protected fixed income exposure.
- High liquidity, as it holds U.S. Treasury securities, which are among the most liquid fixed-income assets.
- Diversification benefits within a broader fixed-income portfolio due to its inflation-hedging characteristics.
Potential Risks
- Inflation expectations may not materialize, reducing the effectiveness of the inflation hedge.
- Short-term TIPS may offer lower yields compared to longer-term TIPS or nominal bonds.
- Interest rate risk still exists, albeit reduced, due to the short duration of the holdings.
- Deflationary periods could negatively impact TIPS returns, as their principal adjustments are tied to inflation.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+0.5%
|
+0.3%
|
+0.1%
|
+0.9%
|
+0.1%
|
-0.4%
|
+0.2%
|
0.0%
|
-0.9%
|
+0.2%
|
-
|
-
|
| 2025 |
+1.0%
|
+1.2%
|
+0.9%
|
+0.8%
|
-0.4%
|
+0.5%
|
+0.3%
|
+1.4%
|
-0.1%
|
+0.1%
|
+0.2%
|
0.0%
|
| 2024 |
+0.5%
|
-0.2%
|
+0.6%
|
-0.1%
|
+1.0%
|
+0.5%
|
+0.9%
|
+0.6%
|
+1.0%
|
-0.5%
|
+0.5%
|
-0.1%
|
| 2023 |
+0.8%
|
-0.4%
|
+2.0%
|
+0.1%
|
-0.6%
|
-0.2%
|
+0.5%
|
+0.2%
|
-0.2%
|
+0.4%
|
+1.0%
|
+1.1%
|
| 2022 |
-0.7%
|
+1.1%
|
-0.8%
|
-0.1%
|
+0.5%
|
-1.6%
|
+1.8%
|
-1.5%
|
-2.9%
|
+1.1%
|
+0.5%
|
-0.4%
|
| 2021 |
+0.5%
|
+0.2%
|
+0.4%
|
+0.9%
|
+0.8%
|
0.0%
|
+1.3%
|
0.0%
|
-0.1%
|
+0.7%
|
+0.1%
|
+0.5%
|
| 2020 |
+0.4%
|
+0.4%
|
-1.9%
|
+1.4%
|
+0.9%
|
+0.7%
|
+0.8%
|
+1.1%
|
-0.2%
|
-0.2%
|
+0.6%
|
+1.0%
|
| 2019 |
+0.8%
|
0.0%
|
+0.8%
|
+0.5%
|
+0.6%
|
+0.6%
|
0.0%
|
+0.5%
|
-0.2%
|
+0.3%
|
0.0%
|
+0.9%
|
| 2018 |
-0.3%
|
-0.1%
|
+0.6%
|
0.0%
|
+0.3%
|
+0.2%
|
-0.2%
|
+0.5%
|
-0.2%
|
-0.4%
|
0.0%
|
+0.2%
|
| 2017 |
+0.5%
|
0.0%
|
+0.1%
|
0.0%
|
0.0%
|
-0.4%
|
+0.3%
|
+0.3%
|
-0.1%
|
+0.2%
|
-0.1%
|
+0.2%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
No holdings data available.
Related ETFs: VTIP vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
VTIP tracks the Bloomberg Barclays U.S. Treasury Inflation-Protected Securities 0-5 Year Index, which includes TIPS with maturities of less than five years. The index is market-cap weighted, meaning larger issuances of TIPS have a greater impact on the fund's performance. The fund is passively managed, aiming to replicate the index's performance with minimal tracking error. It primarily holds U.S. Treasury inflation-protected securities, providing direct exposure to inflation-adjusted returns. The fund is rebalanced regularly to align with the index composition.
Frequently Asked Questions
How does VTIP protect against inflation?
VTIP invests in TIPS, which adjust their principal and interest payments based on changes in the CPI, providing a direct hedge against inflation.
What is the average maturity of VTIP's holdings?
VTIP focuses on TIPS with maturities of less than five years, reducing interest rate risk compared to longer-duration TIPS funds.
How does VTIP compare to other inflation-protected bond ETFs?
VTIP is among the lowest-cost options and has a shorter duration than many peers, making it less sensitive to interest rate changes while still providing inflation protection.
Is VTIP suitable for long-term investors?
While VTIP can be part of a long-term portfolio, its short-term focus may make it more suitable for investors with nearer-term inflation hedging needs.
Industry Overview
The Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is part of the inflation-protected bond ETF category, which is designed to help investors safeguard their portfolios against rising inflation. Inflation-linked bonds, such as TIPS, adjust their principal and interest payments based on changes in the Consumer Price Index (CPI), making them a valuable tool for preserving purchasing power. The short-term focus of VTIP reduces duration risk while still providing inflation protection, making it suitable for conservative investors or those with a shorter investment horizon. The broader TIPS market is influenced by inflation expectations, monetary policy, and economic growth trends.
Alternative Comparison
Compared to its peers, VTIP stands out for its low expense ratio and focus on short-term TIPS. For example, the iShares TIPS Bond ETF (TIP) has a slightly higher expense ratio and a broader maturity range, which may introduce more interest rate risk. Similarly, the Schwab U.S. TIPS ETF (SCHP) also offers a low-cost option but with a longer average maturity. VTIP's short-duration approach makes it particularly suitable for investors seeking inflation protection with reduced interest rate sensitivity.
Issuer Overview
Vanguard is one of the largest and most respected investment management companies globally, known for its low-cost index funds and ETFs. The firm emphasizes long-term, low-cost investing and has a strong reputation for investor-friendly practices. VTIP is part of Vanguard's extensive lineup of fixed-income ETFs, which are designed to provide diversified, cost-effective exposure to various segments of the bond market.
Conclusion
VTIP is a well-regarded ETF for investors seeking short-term inflation protection through U.S. Treasury Inflation-Protected Securities. Its low cost, liquidity, and focus on shorter maturities make it an attractive option for conservative investors or those looking to hedge against inflation in the near term. While it carries some risks, such as deflationary pressures or lower yields, its benefits as an inflation hedge and portfolio diversifier are significant.
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