SPDR S&P 500 ETF Trust
Price
$771.10
YTD
+12.85%
Expense
0.09%
Yield
1.25%
VTIP
VTIP NASDAQ
Vanguard Short-Term Inflation-Protected Securities ETF · by Vanguard
Price
$49.79
YTD return
+3.80%
1Y return
5.20%
Expense ratio
0.04%
Dividend yield
5.85%
AUM
$15B
Vanguard Short-Term TIPS ETF provides inflation protection through short-duration Treasury Inflation-Protected Securities.
What is VTIP?
Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) invests in short-maturity Treasury Inflation-Protected Securities (TIPS), providing inflation protection with minimal interest rate risk. TIPS adjust their principal value based on changes in the Consumer Price Index (CPI).
How TIPS Work
- Principal Adjustment: TIPS principal increases with inflation (CPI-U) and decreases with deflation
- Fixed Coupon: Interest is paid on the inflation-adjusted principal
- Maturity Protection: At maturity, investors receive the greater of adjusted or original principal
Maturity Distribution
- 0-1 year: 25.5%
- 1-3 years: 45.2%
- 3-5 years: 29.3%
VTIP vs SCHP vs TIP
VTIP targets short-term TIPS (0-5 year maturity) for minimal rate risk. SCHP and TIP hold all maturities including long-dated TIPS, making them more volatile but better long-term inflation hedges. VTIP is best for those worried about both inflation AND rising rates.
When to Own TIPS
TIPS outperform nominal treasuries when realized inflation exceeds the market's inflation expectations (breakeven rate). During the 2021-2023 inflation surge, TIPS significantly outperformed nominal bonds.
Top holdings
Every holding links to its own page with a live price and the full list of funds that own it.
| # | Holding | Ticker | Sector | Weight | Price |
|---|---|---|---|---|---|
| 1 | U.S. TIPS 0.625% 2027 | TIPS | Government Inflation-Protected | 4.20% | — |
Frequently asked questions
When should I buy TIPS?
TIPS are most valuable when inflation is expected to rise above market expectations. They provide guaranteed real return regardless of inflation.
What is VTIP vs TIP?
VTIP focuses on short-term TIPS (0-5 years) for lower rate risk, while TIP covers all maturities. VTIP is less volatile.
Do TIPS lose money in deflation?
TIPS principal adjusts down during deflation, but at maturity you receive the greater of adjusted or original principal.
Is VTIP a good inflation hedge?
Yes, VTIP is one of the most direct inflation hedges. It adjusts principal based on CPI, protecting purchasing power.
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Community
VTIP discussion
Questions on fair value, cost, dividends and risk — answered with the fund data on this page.
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VTIP price prediction 2026: what actually drives it?
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