A head-to-head comparison of Vanguard Total Stock Market ETF and Vanguard Short-Term Inflation-Protected Securities ETF covering yield, cost, risk, and income potential.
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Vanguard is known for offering low-cost, passively managed ETFs that emphasize broad market exposure and long-term investing. The company operates 175 ETFs across diverse fund families including Index, Bond, Equity, Dividend, Income, International, Factor, and ESG strategies, serving investors with various goals from core portfolio building to specialized income generation. Notable for its scale and popular tickers like VB (total U.S. small-cap), BND (total bond market), and VBIAX (international bonds), Vanguard focuses on providing comprehensive, index-based investment solutions with an emphasis on cost efficiency and accessibility.
See our curated list of related YouTube videos on VTI and VTIP.
Projections assume the current yield and share price remain constant. Actual results will vary.
Quick verdict
VTI (Vanguard Total Stock Market ETF) and VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) are both quarterly-pay dividend ETFs, but they take different approaches.
VTI offers the higher yield at 1.15% vs 0.18% for VTIP. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.
VTI is cheaper with an expense ratio of 0.03% compared to 0.04%.
They track different benchmarks: VTI is linked to CRSP US Total Market Index while VTIP tracks Bloomberg US TIPS 0-5 Year Index, which means their performance drivers differ.
VTI is the larger fund by assets ($654B), which generally means tighter spreads and better liquidity.
Deep dive
Yield & income
On a $10,000 investment, VTI would generate roughly $9.58/month, while VTIP would produce $1.50/month, at current distribution rates. Both pay quarterly distributions.
VTI yield1.15%
VTIP yield0.18%
Monthly diff on $10K$8.08
Cost & efficiency
Over 10 years on $10,000, VTI would cost approximately $30 in fees vs $40 for VTIP (simplified, not compounded). The $10.00 difference may be offset by yield or performance.
VTI ER0.03%
VTIP ER0.04%
Strategy & risk
VTI tracks CRSP US Total Market Index with a basket approach, while VTIP tracks Bloomberg US TIPS 0-5 Year Index with a basket approach. Beta is 1.0379 for VTI and 0.21 for VTIP, indicating VTIP is less volatile relative to the market.
VTI beta1.0379
VTIP beta0.21
Fund details
VTI is managed by Vanguard (launched 05/24/2001) with $654B in assets. VTIP is managed by Vanguard (launched 10/12/2012) with $19.0B in assets.
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Frequently asked questions
Is VTI or VTIP better for dividend income?
It depends on your goals. VTI currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.
What is the difference between VTI and VTIP?
VTI (Vanguard Total Stock Market ETF) tracks CRSP US Total Market Index with a basket approach, while VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) tracks Bloomberg US TIPS 0-5 Year Index with a basket approach. They are issued by Vanguard and Vanguard respectively.
Can I hold both VTI and VTIP?
Yes. Many income investors hold both to diversify across different strategies and underlying indexes. This can reduce concentration risk while maintaining a strong income stream.
Which has lower fees, VTI or VTIP?
VTI has an expense ratio of 0.03% while VTIP charges 0.04%. Lower fees mean more of your investment returns stay in your pocket over time.
How much income does $10,000 in VTI vs VTIP generate?
At current rates, $10,000 in VTI would generate roughly $9.58 per month ($115.00 annually). The same in VTIP would produce about $1.50 per month ($18.00 annually).
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