# VTIP alternatives: 8 similar ETFs compared

> ETFs similar to VTIP, closest first, with each fund's fee, what it tracks, and returns and worst drops on the same dates as VTIP. Updated daily.

The ETFs most like VTIP are SCHP, TIP and VGIT. SCHP and TIP hold US government bonds whose value rises with inflation (TIPS), like VTIP.

Written by [the Tactfolio research team](https://tactfolio.com/about/editorial-policy). Fund facts checked October 17, 2026. Prices through October 16, 2026.

## Key points

- 8 funds can stand in for VTIP: 2 of the same kind and 6 related funds.
- VTIP charges 0.03% a year (about $3 on $10,000).
- SCHP moved most like VTIP: a daily correlation of 0.88 over about the last five years.
- Returns and drops for each pair use the same dates for both funds.

## 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.

| ETF | How close | Yearly fee | Fee on $10,000 | Tracks |
| --- | --- | --- | --- | --- |
| **VTIP** | This fund | 0.03% | $3 | Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index |
| [SCHP](https://tactfolio.com/etf/SCHP.md) | Same kind of fund | 0.03% | $3 | Bloomberg US Treasury Inflation-Linked Bond Index (Series-L) |
| [TIP](https://tactfolio.com/etf/TIP.md) | Same kind of fund | 0.18% | $18 | ICE U.S. Treasury Inflation Linked Bond Index |
| [VGIT](https://tactfolio.com/etf/VGIT.md) | Related fund | 0.03% | $3 | Bloomberg US Treasury 3-10 Year Bond Index |
| [IEF](https://tactfolio.com/etf/IEF.md) | Related fund | 0.15% | $15 | ICE US Treasury 7-10 Year Bond Index |
| [AGG](https://tactfolio.com/etf/AGG.md) | Related fund | 0.03% | $3 | Bloomberg US Aggregate Bond Index |
| [BND](https://tactfolio.com/etf/BND.md) | Related fund | 0.03% | $3 | Bloomberg U.S. Aggregate Float Adjusted Index |
| [SCHZ](https://tactfolio.com/etf/SCHZ.md) | Related fund | 0.03% | $3 | Bloomberg US Aggregate Bond Index |
| [IUSB](https://tactfolio.com/etf/IUSB.md) | Related fund | 0.06% | $6 | Bloomberg U.S. Universal Index |

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.

| ETF | Moves with VTIP | Per year | VTIP per year | Worst drop | VTIP worst drop | Since |
| --- | --- | --- | --- | --- | --- | --- |
| [SCHP](https://tactfolio.com/etf/SCHP.md) | 0.88 | 1.6% | 2.2% | −14.3% | −6.3% | October 2012 |
| [TIP](https://tactfolio.com/etf/TIP.md) | 0.88 | 1.5% | 2.2% | −14.5% | −6.3% | October 2012 |
| [VGIT](https://tactfolio.com/etf/VGIT.md) | 0.70 | 1.3% | 2.2% | −16.1% | −6.3% | October 2012 |
| [IEF](https://tactfolio.com/etf/IEF.md) | 0.66 | 1.0% | 2.2% | −23.9% | −6.3% | October 2012 |
| [AGG](https://tactfolio.com/etf/AGG.md) | 0.65 | 1.6% | 2.2% | −18.4% | −6.3% | October 2012 |
| [BND](https://tactfolio.com/etf/BND.md) | 0.65 | 1.6% | 2.2% | −18.6% | −6.3% | October 2012 |
| [SCHZ](https://tactfolio.com/etf/SCHZ.md) | 0.65 | 1.6% | 2.2% | −18.7% | −6.3% | October 2012 |
| [IUSB](https://tactfolio.com/etf/IUSB.md) | 0.64 | 2.0% | 2.5% | −17.9% | −6.3% | June 2014 |

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](https://tactfolio.com/etf/SCHP.md) 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](https://tactfolio.com/etf/TIP.md) 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](https://tactfolio.com/etf/VGIT.md) 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](https://tactfolio.com/etf/IEF.md) 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](https://tactfolio.com/etf/AGG.md) 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](https://tactfolio.com/etf/BND.md) 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](https://tactfolio.com/etf/SCHZ.md) 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](https://tactfolio.com/etf/IUSB.md) 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](https://tactfolio.com/etf/SCHP.md), Schwab U.S. TIPS ETF (same kind of fund, 0.03% a year)
- **iShares (BlackRock):** [TIP](https://tactfolio.com/etf/TIP.md), 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](https://www.irs.gov/publications/p550).

## 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](https://tactfolio.com/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](https://tactfolio.com/docs/backtests.md) for more on these measures.

## Research and test it

- [Portfolio rebalancing](https://tactfolio.com/learn/portfolio-rebalancing): What portfolio rebalancing is, why a 60/40 mix drifts, calendar vs threshold methods, and how taxes and costs fit in.
- [Risk parity](https://tactfolio.com/learn/risk-parity): Risk parity balances risk instead of dollars. See a simple stock and bond example, why funds use leverage, and what went wrong in 2022.
- [ETF screener](https://tactfolio.com/screener.md): A free ETF screener for 162 US-listed funds. Filter by type, issuer and fee, sort by returns or worst drop, and compare funds side by side.
- [ETF expense ratio](https://tactfolio.com/learn/etf-expense-ratio): What an ETF expense ratio is, how the fund charges it, and how 0.03% vs 1% adds up over 10 and 30 years, with real fund examples.
- [Backtest a portfolio](https://tactfolio.com/trading-tools/backtest-portfolio): Backtest a portfolio of US stocks and ETFs. Enter tickers and shares, pick when to rebalance, and get the results with a link to share.
- [Backtesting](https://tactfolio.com/backtesting): Free backtesting software for stocks, ETFs, and crypto perps.

## Common questions

### What ETF is most similar to VTIP?

SCHP is the closest. 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. Over about the last five years they moved together on most days.

### Is there a cheaper alternative to VTIP?

Not among the funds here. VTIP charges 0.03% a year, about $3 on $10,000, which is as low as or lower than each alternative listed.

### Is VTIP or SCHP better?

Neither is better for everyone. From October 2012 to October 2026, VTIP returned about 2.2% a year and SCHP returned about 1.6% a year. VTIP charges 0.03% a year and SCHP charges 0.03%. Past returns do not tell you what comes next.

### What if I had put $10,000 in VTIP 10 years ago?

It would have grown to about $13,465 by October 16, 2026, with dividends reinvested. That is about 3.0% a year. Past returns do not tell you what comes next.

## Sources

- [Vanguard: Vanguard Short-Term Inflation-Protected Securities ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/vtip)
- [Schwab: Schwab U.S. TIPS ETF fund page](https://www.sec.gov/Archives/edgar/data/1454889/000088454626000187/c497k.htm)
- [iShares (BlackRock): iShares TIPS Bond ETF fund page](https://www.ishares.com/us/products/239467/ishares-tips-bond-etf)
- [Vanguard: Vanguard Intermediate-Term Treasury ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/vgit)
- [iShares (BlackRock): iShares 7-10 Year Treasury Bond ETF fund page](https://www.ishares.com/us/products/239456/ishares-7-10-year-treasury-bond-etf)
- [iShares (BlackRock): iShares Core U.S. Aggregate Bond ETF fund page](https://www.ishares.com/us/products/239458/ishares-core-u-s-aggregate-bond-etf)
- [Vanguard: Vanguard Total Bond Market ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/bnd)
- [Schwab: Schwab U.S. Aggregate Bond ETF fund page](https://www.sec.gov/Archives/edgar/data/1454889/000088454626000188/c497k.htm)
- [iShares (BlackRock): iShares Core Universal USD Bond ETF fund page](https://www.ishares.com/us/products/264615/ishares-core-universal-usd-bond-etf)
- [IRS Publication 550: wash sales](https://www.irs.gov/publications/p550)

> Not financial advice. Tactfolio is a research and automation tool. It is not a broker or a financial adviser. This page is for education only. Backtests are hypothetical. They show how rules would have done on past prices, not how they will do. All investing involves risk, including losing the money you put in.