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Dividend Vision

ETF Comparison

VTI vs VTIP: Own the Stock Market, or Short-Term TIPS?

A head-to-head of Vanguard Total Stock Market and Vanguard Short-Term Inflation-Protected Securities covering asset class.

Updated September 30, 2026

How these figures are calculated: methodology.

Best for

  • VTIInvestors who want the broadest one-fund diversification at rock-bottom cost.
  • VTIPInvestors who want higher current income (5.53% vs 1.02% for VTI).

Jump to the side-by-side numbers

Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

VTI has outpaced VTIP over the trailing twelve months, posting a 15.72% total return against 1.33%. The lead holds up over 10 years too: VTI has compounded at 14.79% a year, against 2.99% for VTIP. VTIP has been the steadier holding, though — annualized volatility of 2.5% against 15.4% for VTI. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD cumulative1Y cumulative3Y annualized5Y annualized10Y annualizedSince Oct 2012Volatility Sharpe Sortino Max drawdown
VTI12.23%15.72%22.42%12.31%14.79%14.20%15.4%1.031.50-19.3%
VTIP0.95%1.33%5.01%2.99%2.99%2.17%2.5%0.170.23-2.9%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 30, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Oct 2012” measures every fund from October 16, 2012 — the start of shared available history — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricVTIVTIP
Full nameVanguard Morningstar Total Stock Market ETFVanguard Short-Term Inflation-Protected Securities ETF
IssuerVanguardVanguard
Underlying indexMorningstar US Total Market IndexBloomberg US TIPS 0-5 Year Index
Last Close$374.24 as of September 30, 2026$49.22 as of September 30, 2026
Distribution rate1.02%5.53%
Trailing 12-month yield1.05%4.19%
Distribution Safety Score™ 10072
Safety-Adjusted Yield 1.02%3.98%
Expense ratio0.03%0.03%
AUM$700B$20.7B
Distribution frequencyQuarterlyQuarterly
ObjectiveSeeks to track the Morningstar US Total Market Index.Tracks the Bloomberg US TIPS 0-5 Year Index.
Asset classEquityFixed Income
Inception date05/24/200110/12/2012
Beta1.03790.2
Last dividend$0.9555 payable today$0.68
Ex-dividend date09/28/202607/01/2026

Bottom lineChoose VTI if you want the broadest one-fund diversification at rock-bottom cost. Choose VTIP if you want higher current income (5.53% vs 1.02% for VTI).

Stocks versus short-term TIPS

VTI is the US stock market. VTIP is short-term inflation-linked bonds. Asset class, not a ticker-letter mix-up.

VTIVTIP
Asset classUS total stock marketShort-term TIPS
Expense ratio0.03%0.03%
Distribution rate1.02%5.53%
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Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

Vanguard
ETFs116
Total AUM$4677B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Vanguard is one of the largest and most established ETF issuers, known for low-cost, broadly diversified fund offerings built on passive indexing principles. Their lineup spans multiple asset classes and strategies, including core equity and bond index funds, dividend-focused portfolios, ESG-screened options, factor-based strategies, sector exposure, target-date retirement funds, and international investments across developed and emerging markets. The platform is characterized by its emphasis on accessibility and cost efficiency across a comprehensive range of fund families, serving both individual investors seeking broad market exposure and those pursuing specific income, sustainability, or thematic objectives.

See our curated list of related YouTube videos on VTI and VTIP.

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Quick verdict

VTI (Vanguard Morningstar Total Stock Market ETF) and VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

VTIP offers the higher yield at 5.53% vs 1.02% for VTI. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

They have different reference exposures: VTI is linked to Morningstar US Total Market Index while VTIP is linked to Bloomberg US TIPS 0-5 Year Index, which means their performance drivers differ.

VTI is the larger fund by assets ($700B), but assets alone do not establish trading costs or liquidity.

Deep dive

Yield & income

On a $10,000 investment, VTI would generate roughly $25.50 cash per distribution, while VTIP would produce $138.25 cash per distribution, at current distribution rates. Both pay quarterly distributions.

VTI yield1.02%
VTIP yield5.53%
Cash diff on $10K$112.75

Cost & efficiency

Over 10 years on $10,000, VTI would cost approximately $30 in fees vs $30 for VTIP (simplified, not compounded). Both charge the same expense ratio.

VTI ER0.03%
VTIP ER0.03%

Strategy & risk

VTI tracks Morningstar US Total Market Index, while VTIP tracks Bloomberg US TIPS 0-5 Year Index. Beta is 1.0379 for VTI and 0.2 for VTIP, making VTIP the less volatile of the two by this measure.

VTI beta1.0379
VTIP beta0.2

Fund details

VTI is managed by Vanguard (launched 05/24/2001) with $700B in assets. VTIP is managed by Vanguard (launched 10/12/2012) with $20.7B in assets.

VTI AUM$700B
VTIP AUM$20.7B
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Frequently asked questions

What is the difference between VTI and VTIP?

VTI (Vanguard Morningstar Total Stock Market ETF) holds the US stock market. VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) holds short-term TIPS. Stocks versus inflation-linked bonds — not two flavors of the same fund. Cost is 0.03% versus 0.03%. Distributions are 1.02% and 5.53% as of September 2026.

What is the current distribution rate for VTI and VTIP?

VTI currently distributes 1.02% and VTIP 5.53%, based on fund data updated September 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is VTI or VTIP better for dividend income?

It depends on your goals. VTIP 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.

Can I hold both VTI and VTIP?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is VTI or VTIP safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — VTI scores 100, VTIP scores 72, so VTI's payout currently looks the more resilient of the two. VTIP has also shown lower price volatility (beta 0.20 vs 1.04 for VTI). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, VTI or VTIP?

VTI and VTIP both charge the same expense ratio of 0.03%, so neither is cheaper on fees — pick based on yield, strategy, or underlying index instead.

How much income does $10,000 in VTI vs VTIP generate?

At current rates, $10,000 in VTI would generate roughly $25.50 cash per distribution ($102.00 annually). The same in VTIP would produce about $138.25 cash per distribution ($553.00 annually).

Which has performed better historically, VTI or VTIP?

VTI has outpaced VTIP over the trailing twelve months, posting a 15.72% total return against 1.33%. The lead holds up over 10 years too: VTI has compounded at 14.79% a year, against 2.99% for VTIP. VTIP has been the steadier holding, though — annualized volatility of 2.5% against 15.4% for VTI. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

VTI vs VTIP — at a glance

Generated September 26, 2026.

VTI holds the full U.S. stock market through the Morningstar US Total Market Index, generating income primarily from dividends on thousands of equities. VTIP invests in short-term Treasury Inflation-Protected Securities (TIPS) maturing within five years, delivering returns from both coupon payments and inflation adjustments to principal. government inflation protection. VTI has $700B in assets under management versus $20.7B for VTIP, reflecting VTI's role as one of the market's largest total-market funds; both charge the same 0.03% expense ratio. VTI was established 25 years, while VTIP launched 13 years, giving VTI a much longer track record.

Who each is best for

  • VTI: Fits investors seeking broad U.S. market participation with minimal costs and moderate, tax-efficient income from dividends. Works for those with longer time horizons who can tolerate equity-market volatility.
  • VTIP: Designed for investors prioritizing capital preservation and real return in the face of inflation, willing to accept lower nominal yields in exchange for government backing and principal adjustment for price changes.
  • Inflation and real-yield divergence: VTIP's principal adjusts for CPI, but if real yields (TIPS coupon minus expected inflation) fall sharply, mark-to-market value declines even as nominal principal grows. VTI has no such mechanical disconnect.
  • Purchasing-power mismatch: VTI's 1.02% dividend yield may lag inflation in prolonged high-inflation environments; VTIP's distributions are explicitly tied to inflation adjustment, though the total return depends on reinvestment of principal adjustments.

Bottom line

If you're building a growth-oriented allocation and want maximum market exposure at minimal cost, VTI's scale, low fee, and broad equity participation stand out. Past performance does not predict future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

Learn the method

The metrics behind this comparison, explained in the Academy.

Bond fund basics How to read a fund's stats Why total return beats chasing yield

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These comparisons follow the Dividend Vision methodology.