Vanguard TIPS ETF: VTIP, VTP and VAIPX compared
A Vanguard TIPS ETF comes in two versions. VTIP holds short-term TIPS with under five years remaining. VTP, launched July 7, 2025, holds TIPS across the full maturity range. Vanguard also runs an actively managed mutual fund, the Inflation-Protected Securities Fund (Admiral shares, VAIPX), which is not an ETF. This page shows what each one holds and which job it does.
The three Vanguard TIPS funds side by side
| Measure | VTIP (ETF) | VTP (ETF) | VAIPX (mutual fund) |
|---|---|---|---|
| Maturity range | Remaining maturities under 5 years | Full range | Dollar-weighted average maturity expected 7 to 20 years |
| Expense ratio | 0.03% | 0.05% | 0.10% (Admiral, as of April 28, 2026) |
| Average duration | 2.3 years | 6.3 years | Not in the factsheet reviewed |
| Average effective maturity | 2.4 years | 7.1 years | Not in the factsheet reviewed |
| Bonds held | 25 | 48 | Not in the factsheet reviewed |
| Net assets | $19,343 million (ETF share class) | $159 million (ETF share class) | $13,761 million (total) |
| Dividend schedule | Quarterly | Quarterly | Not in the factsheet reviewed |
| Benchmark | Bloomberg U.S. TIPS 0-5 Year Index | ICE U.S. Treasury Inflation Linked Bond Index | Bloomberg U.S. TIPS Index |
| Inception | October 12, 2012 | July 7, 2025 | June 10, 2005 (Admiral) |
Sources: Vanguard factsheets for VTIP, VTP and VAIPX, all as of June 30, 2026 and checked September 29, 2026. Expense ratios come from the prospectuses. Vanguard's fund pages could not be read directly, so these factsheets are the source. Holdings and duration change over time.
Which job each fund does
VTIP is the short-duration choice. It holds TIPS that mature within five years, so its price moves little when real yields change. It fits money you may need within a few years. Our short-term TIPS ETF page covers that group in more detail.
VTP is the broad-market choice. Its index is from the same family as the iShares TIP fund, so it holds long and short maturities together. It costs 0.05% and has a very short history. It fits a plan that wants exposure to the whole TIPS market in one fund. Compare it with SCHP and TIP on our best TIPS ETFs page.
VAIPX is different in kind. It is a mutual fund, and its managers choose bonds actively. The fund invests at least 80% in inflation-indexed bonds, which can include government, agency and corporate issues, and Vanguard expects the average maturity to run 7 to 20 years. That makes it longer than either ETF. In 2022 it returned -11.85%, which shows what rising real yields can do to a long-maturity fund.
Duration: 2.3 years versus 6.3 years
Duration estimates how much a fund's price moves when real yields change. A longer duration means a larger move. The table shows a hypothetical one-percentage-point rise in real yields on $10,000.
| Fund | Duration | Price effect only | Value after that effect |
|---|---|---|---|
| VTIP | 2.3 years | −$230 | $9,770 |
| VTP | 6.3 years | −$630 | $9,370 |
A one-point fall in real yields reverses the sign. These are scenarios, not forecasts. They leave out inflation accruals, distributions and fees. VAIPX has no duration figure in the factsheet reviewed, so it is not in this table.
VTP has a short track record
VTP launched July 7, 2025. Its factsheet shows a NAV return of 3.86% since inception through June 30, 2026. That covers less than one year, so it is a cumulative figure. Do not annualize it and do not compare it with the multi-year returns of older funds. A longer record will say more about how closely it tracks its index.
Vanguard has no TIPS ladder ETF
A TIPS ladder holds bonds that mature in a chain of years, so cash arrives on set dates. Vanguard does not offer a TIPS ETF built that way. VTIP and VTP both hold a rolling mix and never mature. If you want funds with a defined maturity year, see TIPS ladder ETFs from iShares. If you want to build the ladder yourself from individual bonds, see how a TIPS ladder works. The trade-off between the two routes is in funds versus individual TIPS.
Reading the distributions
Both ETFs pay quarterly. The amounts vary because TIPS principal adjusts with inflation and the fund passes through income based on those adjustments. A trailing distribution yield therefore does not forecast the next payment. Taxes can also apply to inflation adjustments before you sell, as explained on the phantom income page.
How the figures were computed
The price effect uses approximate price change = −duration × change in yield × starting value. For VTIP: −2.3 × 0.01 × $10,000 = −$230. For VTP: −6.3 × 0.01 × $10,000 = −$630. The inputs are the average durations in the June 30, 2026 Vanguard factsheets. The formula ignores convexity, coupon income, inflation accrual, fees and changes in the shape of the yield curve.
The fee comparison, if you want one, multiplies a $10,000 balance by each expense ratio: $3 for VTIP, $5 for VTP and $10 for VAIPX. Actual fund costs accrue inside the fund, so treat this as a comparison convention.
