At a glance
VTIP charges 0.03% a year, below the 0.07% average of the 7 funds most like it (the cheapest of 8). It has $71.01B in assets, the largest of that group; it paid 4.78% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +2.8% with distributions reinvested, 2nd of those 8 funds; over three years it returned +5.3% a year. At its worst it fell 6.3% in the 2020 crash (S&P 500: 33.7%) and 5.5% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 3 months and 14 months after the lows. Its ten largest positions make up 49.8% of the fund, out of 25 in all.
The short version
Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) tracks the Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Years Index, holding U.S. government bonds adjusted for inflation with less than five years left to maturity. Its 0.03% expense ratio ties the cheapest similar funds, including iShares' STIP, and is below the 0.07% peer average. Short maturities, averaging 2.4 years as of June 30, 2026, have kept price swings small, though payouts rise and fall with inflation.
Price history
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VTIP +2.8% over the year to Oct 30, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| VTIP official prospectus, to Dec 31, 2025 | — | +6.07% | — | +3.53% | +3.14% | — |
| VTIP price data to Oct 30, 2026 | +2.4% | +2.8% | +5.3% | +3.1% | +3.2% | +2.3% |
- Over the year to Oct 30, 2026, VTIP returned +2.8%, 2nd of 8 among similar funds.
- Its 5-year annualized return was +3.1% and its 10-year +3.2%.
- In the 2020 COVID crash it fell 6.3% and regained its old high 2.6 months after the low.
- Its worst full calendar year was 2022 (-3.0%); its best was 2025 (+6.1%).
- The deepest fall in its price history was 6.4% (Mar 11, 2022 to Dec 22, 2022), recovered by Dec 13, 2023.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +2.4% | — |
| 2025 | +6.1% | +6.07% |
| 2024 | +4.7% | +4.76% |
| 2023 | +5.2% | +4.62% |
| 2022 | -3.0% | -2.84% |
| 2021 | +5.3% | +5.32% |
| 2020 | +4.9% | +4.97% |
| 2019 | +5.2% | +4.83% |
| 2018 | +0.6% | +0.54% |
| 2017 | +0.8% | — |
| 2016 | +2.5% | — |
| 2015 | +0.2% | — |
| 2014 | -1.4% | — |
| 2013 | -1.5% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 2.4% over that stretch · deepest drop along the way 6.3%, back to its old high 2.6 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 3.5% over that stretch · deepest drop along the way 5.5%, back to its old high 14.4 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.6300 | |
| 2025 | $1.8900 | +44.3% |
| 2024 | $1.3100 | -18.1% |
| 2023 | $1.6000 | -49.8% |
| 2022 | $3.1900 | +32.9% |
| 2021 | $2.4000 | +293.4% |
| 2020 | $0.6100 | -46.0% |
| 2019 | $1.1300 | -3.4% |
| 2018 | $1.1700 | +58.1% |
| 2017 | $0.7400 | +97.9% |
| 2016 | $0.3740 | -5.3% |
| 2014 | $0.3950 | +1617.4% |
| 2013 | $0.0230 |
What's inside
As of Jun 30, 2026, the fund held 25 securities; the ten largest made up 49.81% of assets.
| Holding | Weight | |
|---|---|---|
| United States Treasury Inflation Indexed Bonds Structured notes | 5.39% | |
| United States Treasury Inflation Indexed Bonds Structured notes | 5.33% | |
| United States Treasury Inflation Indexed Bonds Structured notes | 5.30% | |
| United States Treasury Inflation Indexed Bonds Structured notes | 5.14% | |
| United States Treasury Inflation Indexed Bonds Structured notes | 4.97% | |
| United States Treasury Inflation Indexed Bonds Structured notes | 4.83% | |
| United States Treasury Inflation Indexed Bonds Structured notes | 4.83% | |
| United States Treasury Inflation Indexed Bonds Structured notes | 4.74% | |
| United States Treasury Inflation Indexed Bonds Structured notes | 4.70% | |
| United States Treasury Inflation Indexed Bonds Structured notes | 4.59% | |
| United States Treasury Inflation Indexed Bonds Structured notes | 4.42% | |
| United States Treasury Inflation Indexed Bonds Structured notes | 4.29% | |
| United States Treasury Inflation Indexed Bonds Structured notes | 4.26% | |
| United States Treasury Inflation Indexed Bonds Structured notes | 4.20% | |
| United States Treasury Inflation Indexed Bonds Structured notes | 4.11% |
By country
United States 98.99%By issuer
US Treasury 98.99%The bonds mature in 2.4 years on average (weighted by size), with an average coupon of 1.08%.
Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors added a net $4.73B (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.91%, +0.08%, -0.32%.
How it works
VTIP is the ETF share class of Vanguard Short-Term Inflation-Protected Securities Index Fund. It seeks to track the Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Years Index. TIPS are Treasury bonds whose principal rises and falls with the Consumer Price Index, and the Treasury pays interest on that adjusted principal. The index holds only TIPS with less than five years left to maturity, weighted by market value, so larger issues count more.
The fund replicates the index, holding all or nearly all of its bonds in about the same proportions, with at least 80% of net assets in them. As of June 30, 2026, it held 25 TIPS issues, plus 0.59% in cash and no derivatives. The 10 largest made up about 50% of assets, and none topped 5.4%. Holdings shift as bonds mature and as longer TIPS age into the under-five-year window. Portfolio turnover, the share of holdings replaced in a year, was 25%.
The fund keeps its dollar-weighted average maturity, the typical time until its bonds repay, close to the index's 2.4 years as of September 30, 2025. That short span limits how much prices fall when interest rates rise. Because inflation adjustments flow into income, the prospectus warns that distributions are likely to fluctuate considerably more than a conventional bond fund's. Shares trade on Nasdaq at market prices.
What it really costs
- VTIP charges 0.03% a year, versus an average of 0.07% for the similar funds below (1st of 8, cheapest first).
- Of that, 0.02% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $3 in the first year and $39 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| VTIP | $3 | $10 | $17 | $39 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
Its TIPS adjust principal for inflation, and maturities averaging 2.4 years limit, but don't remove, losses when interest rates rise.
VTIP could add short-term Treasury Inflation-Protected Securities (TIPS), bonds whose principal adjusts with inflation. Launched in October 2012, it has no 2008 record. In the 2020 COVID crash it fell 6.3% between March 5 and March 18, 2020, then recovered by June 5. In the 2022 bear market it dropped 5.5% from March to September, a reminder that inflation protection doesn't shield TIPS from rising interest rates; 2022 was its worst calendar year, with a 2.84% loss. Its deepest drop, 6.4%, bottomed on December 22, 2022, and took 11.7 months to recover. A retiree raising cash then would have locked in a modest loss.
Over the 12 months to October 27, 2026, it yielded 4.79%, paid quarterly, though TIPS payouts can swing widely with inflation. It costs 0.03% a year. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want inflation-linked Treasury bonds with short maturities, averaging 2.4 years as of June 30, 2026, to limit interest-rate swings.
- Cost-focused investors: its 0.03% expense ratio, below the 0.07% peer average, comes to $39 over 10 years on $10,000 in the SEC's example.
- Those wary of default risk: about 99% of assets were U.S. Treasury TIPS as of June 30, 2026, and the fund held no derivatives.
Look elsewhere if
- Investors who need steady, predictable income: payouts arrive quarterly and track inflation, so they can swing far more than a regular bond fund's.
- Anyone expecting TIPS to hold firm when rates rise: VTIP lost 2.84% in 2022 and needed until December 2023 to regain its peak.
- Those seeking long-term growth: VTIP returned an average of 3.14% a year over the 10 years through December 31, 2025.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| VTIP this fund | 2.4 yrs | 0.03% | $71.01B | +2.8% | +5.3% |
| STIP iShares 0-5 Year TIPS Bond ETF | 2.4 yrs | 0.03% | $15.91B | +2.1% | +4.8% |
| SPTS SPDR Portfolio Short Term Treasury ETF | 2 yrs | 0.03% | $5.91B | +1.7% | +4.1% |
| SCHO Schwab Short-Term U.S. Treasury ETF | 1.9 yrs | 0.03% | $12.95B | +2.1% | +4.2% |
| VGSH Vanguard Short-Term Treasury ETF | 1.9 yrs | 0.03% | $39.20B | +2.2% | +4.2% |
| TDTT FlexShares iBoxx 3-Year Target Duration TIP… | 2.9 yrs | 0.18% | $2.55B | +1.4% | +4.9% |
| BSV Vanguard Short-Term Bond ETF | 2.9 yrs | 0.03% | $69.75B | +1.7% | +4.5% |
| SHV iShares Short Treasury Bond ETF | 0.3 yrs | 0.15% | $20.97B | +3.3% | +4.3% |
Questions investors ask
Is VTIP a good hedge against inflation?
Partly. VTIP holds TIPS, Treasury bonds whose principal adjusts with the Consumer Price Index, so its income and value tend to rise with inflation. It isn't immune to interest rates, though: it lost 2.84% in 2022, its worst calendar year, as bond prices fell. Short maturities, averaging 2.4 years as of June 30, 2026, limit that rate risk compared with longer-term bonds, but they also mean smaller price gains when rates fall.
What's the difference between VTIP and STIP?
Very little. Both hold U.S. TIPS maturing within five years, both charge 0.03% a year, and both had an average maturity of 2.4 years in mid-2026 holdings reports. Returns were close: 2.1% for each over one year, and 5.1% a year for VTIP versus 4.9% for STIP over three years, as of October 27, 2026. The biggest gap is size: Vanguard's VTIP had $71.0 billion across all share classes as of June 30, 2026, versus $15.9 billion for iShares' STIP as of July 31, 2026.
Does VTIP pay monthly dividends?
No. VTIP pays distributions quarterly. Over the 12 months to October 27, 2026, it paid $2.34 per share, a trailing yield of 4.79%. Because TIPS income includes inflation adjustments, those payouts aren't fixed. Vanguard's prospectus says the fund's distributions are likely to fluctuate considerably more than a conventional bond fund's. When inflation cools, quarterly payouts can shrink sharply.
Can you lose money in VTIP?
Yes, though its losses have been modest. Its bonds are issued by the U.S. Treasury, so default risk (the chance a borrower fails to pay) is low, but their prices fall when interest rates rise. Its deepest drop since its 2012 launch was 6.4%, from March 11 to December 22, 2022, and it regained that peak on December 13, 2023. It also fell 6.3% in under two weeks during the March 2020 COVID crash. It isn't a bank deposit and isn't FDIC-insured.
What's the difference between VTIP and VGSH?
Inflation protection. Both are Vanguard ETFs charging 0.03% a year, but VGSH, the Vanguard Short-Term Treasury ETF, holds conventional Treasury bonds that pay fixed interest, while VTIP's TIPS adjust their principal for inflation. VGSH's bonds were slightly shorter, averaging 1.9 years as of May 31, 2026, versus 2.4 years for VTIP as of June 30, 2026. Over the three years through October 27, 2026, VTIP returned 5.1% a year and VGSH 4.1%. Past results don't show which will lead next.