VTIP alternatives and similar ETFs

VTIP alternatives at a glance#

Each fund below can stand in for VTIP, closest first. “Same kind” funds hold the same kind of bonds through a different index. “Related” funds make a different bet that often moves the same way.

Fees come from each fund company, checked on the dates shown on each fund’s page.

How VTIP and its alternatives did over the same dates#

Each row measures the alternative and VTIP on the days both traded, so neither gets a head start. Correlation shows how closely their daily moves matched over about the last five years. A value of 1 means they always moved together.

Prices through October 16, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.

Each VTIP alternative, compared#

SCHP: Schwab U.S. TIPS ETF#

SCHP also holds US government bonds whose value rises with inflation (TIPS). It tracks the Bloomberg US Treasury Inflation-Linked Bond Index (Series-L), while VTIP tracks the Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index.

It charges 0.03% a year, about $3 on $10,000, against $3 for VTIP. It held 49 holdings, against 25 for VTIP.

From October 2012 to October 2026, SCHP returned about 1.6% a year and VTIP returned about 2.2% a year. Over about the last five years they moved together on most days (correlation 0.88).

Read the SCHP fund page for its returns by year and worst drop.

TIP: iShares TIPS Bond ETF#

TIP also holds US government bonds whose value rises with inflation (TIPS). It tracks the ICE U.S. Treasury Inflation Linked Bond Index, while VTIP tracks the Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index.

It charges 0.18% a year, about $18 on $10,000, against $3 for VTIP. It held 48 holdings, against 25 for VTIP.

From October 2012 to October 2026, TIP returned about 1.5% a year and VTIP returned about 2.2% a year. Over about the last five years they moved together on most days (correlation 0.88).

Read the TIP fund page for its returns by year and worst drop.

VGIT: Vanguard Intermediate-Term Treasury ETF#

VGIT is a looser match. It holds US government bonds that pay back in about 3 to 10 years, while VTIP holds US government bonds whose value rises with inflation (TIPS).

It charges 0.03% a year, about $3 on $10,000, against $3 for VTIP. It held 102 holdings, against 25 for VTIP.

From October 2012 to October 2026, VGIT returned about 1.3% a year and VTIP returned about 2.2% a year. Over about the last five years they often moved together, but not always (correlation 0.70).

Read the VGIT fund page for its returns by year and worst drop.

IEF: iShares 7-10 Year Treasury Bond ETF#

IEF is a looser match. It holds US government bonds that pay back in about 3 to 10 years, while VTIP holds US government bonds whose value rises with inflation (TIPS).

It charges 0.15% a year, about $15 on $10,000, against $3 for VTIP. It held 17 holdings, against 25 for VTIP.

From October 2012 to October 2026, IEF returned about 1.0% a year and VTIP returned about 2.2% a year. Over about the last five years they often moved together, but not always (correlation 0.66).

Read the IEF fund page for its returns by year and worst drop.

AGG: iShares Core U.S. Aggregate Bond ETF#

AGG is a looser match. It holds a broad mix of US bonds: government, company and mortgage bonds, while VTIP holds US government bonds whose value rises with inflation (TIPS).

It charges 0.03% a year, about $3 on $10,000, against $3 for VTIP. It held 13,416 holdings, against 25 for VTIP.

From October 2012 to October 2026, AGG returned about 1.6% a year and VTIP returned about 2.2% a year. Over about the last five years they often moved together, but not always (correlation 0.65).

Read the AGG fund page for its returns by year and worst drop.

BND: Vanguard Total Bond Market ETF#

BND is a looser match. It holds a broad mix of US bonds: government, company and mortgage bonds, while VTIP holds US government bonds whose value rises with inflation (TIPS).

It charges 0.03% a year, about $3 on $10,000, against $3 for VTIP. It held 11,434 holdings, against 25 for VTIP.

From October 2012 to October 2026, BND returned about 1.6% a year and VTIP returned about 2.2% a year. Over about the last five years they often moved together, but not always (correlation 0.65).

Read the BND fund page for its returns by year and worst drop.

SCHZ: Schwab U.S. Aggregate Bond ETF#

SCHZ is a looser match. It holds a broad mix of US bonds: government, company and mortgage bonds, while VTIP holds US government bonds whose value rises with inflation (TIPS).

It charges 0.03% a year, about $3 on $10,000, against $3 for VTIP. It held 12,355 holdings, against 25 for VTIP.

From October 2012 to October 2026, SCHZ returned about 1.6% a year and VTIP returned about 2.2% a year. Over about the last five years they often moved together, but not always (correlation 0.65).

Read the SCHZ fund page for its returns by year and worst drop.

IUSB: iShares Core Universal USD Bond ETF#

IUSB is a looser match. It holds a broad mix of US bonds: government, company and mortgage bonds, while VTIP holds US government bonds whose value rises with inflation (TIPS).

It charges 0.06% a year, about $6 on $10,000, against $3 for VTIP. It held 18,251 holdings, against 25 for VTIP.

From June 2014 to October 2026, IUSB returned about 2.0% a year and VTIP returned about 2.5% a year. Over about the last five years they often moved together, but not always (correlation 0.64).

Read the IUSB fund page for its returns by year and worst drop.

VTIP versions from other fund companies#

Some people keep all their funds with one company. Here is the closest fund to VTIP from each other company on this page:

• Schwab: SCHP, Schwab U.S. TIPS ETF (same kind of fund, 0.03% a year)
• iShares (BlackRock): TIP, iShares TIPS Bond ETF (same kind of fund, 0.18% a year)

Most brokers let you buy any ETF, whoever runs it. Mutual fund versions, such as a fund company’s index mutual fund, are not listed here.

How to choose between VTIP and its alternatives#

• What it tracks. A fund on the same index holds the same bonds. A different index can mean different weights, more or fewer holdings, or a different mix.
• The fee. The difference is often small. On $10,000, VTIP costs about $3 a year.
• History. An older fund has been through more bad markets, so you can see how far it fell.
• What you already own. Two funds that move together add little variety. A fund with a low correlation behaves more on its own.

Swapping VTIP to harvest a tax loss#

Some investors sell a fund at a loss to lower their taxes, then buy a similar fund so they stay invested. This is called tax-loss harvesting.

The IRS wash sale rule blocks the loss if you buy a “substantially identical” security within 30 days before or after the sale. The IRS has not said exactly when two funds count. Funds on the same index are more likely to. Funds on a different index, such as SCHP, TIP or VGIT, are less likely to.

Ask a tax professional before you rely on this. Read the IRS rules in Publication 550.

Test VTIP and its alternatives in a backtest#

Tactfolio is a platform where you build rules-based investing strategies, backtest them on decades of real prices, share them, and run them automatically in your own Alpaca account. Open the builder, add VTIP and SCHP, and see how each would have done on the same dates, or how a mix of both would have done.

The details#

Alternatives are picked from facts, not from returns. First come funds that track the same index as VTIP. Then come funds that hold the same kind of bonds through another index. Last come funds from a close category that make a different bet. Leveraged funds are only listed as alternatives to other leveraged funds.

Within each group, the funds whose daily returns moved most like VTIP over about the last five years come first. Returns and worst drops use Tactfolio’s stored daily prices, adjusted for splits, with dividends reinvested. Each alternative is measured with VTIP only on days both traded. Read what a backtest simulates for more on these measures.