# VTIP ETF: fees, returns, drawdowns and holdings

> What VTIP holds, its 0.03% yearly fee, returns by year, its worst drop, and which Tactfolio strategies hold it. Updated daily.

Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is an exchange-traded fund (ETF) run by Vanguard. This fund owns US Treasury bonds called TIPS, whose value is adjusted for inflation. It charges 0.03% a year. From October 2012 to October 2026 it returned about 2.2% a year, and its worst drop was −6.3%.

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

- Expense ratio: 0.03% a year (about $3 on $10,000).
- Started trading on October 12, 2012.
- Worst drop since 2012: −6.3%.
- No Tactfolio classic strategies hold it.

## What does VTIP hold?

This fund owns US Treasury bonds called TIPS, whose value is adjusted for inflation. All of them are paid back in less than five years. Its price can still go down at times, for example when interest rates rise.

It tracks the Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index. It had 25 holdings as of September 30, 2026, according to Vanguard.

| Fact | VTIP |
| --- | --- |
| Full name | Vanguard Short-Term Inflation-Protected Securities ETF |
| Issuer | Vanguard |
| Expense ratio | 0.03% a year |
| Started trading | October 12, 2012 |
| Tracks | Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index |
| Type | US bonds, ETF |
| Holdings | 25 holdings as of September 30, 2026 |
| Facts checked | October 17, 2026 on the [Vanguard fund page](https://investor.vanguard.com/investment-products/etfs/profile/vtip) |

## What is the VTIP expense ratio?

VTIP charges 0.03% a year. An expense ratio is the yearly fee a fund takes to run itself. On $10,000, a 0.03% fee comes to about $3 a year.

You never get a bill for it. The fund takes the fee out of its own value a little each day.

## How has VTIP done since 2012?

From October 2012 to October 2026, VTIP returned about 2.2% a year. Say you put in $10,000 at the start. It would have been worth about $13,527 at the end, with every dividend reinvested.

| Measure | VTIP |
| --- | --- |
| Total return | 35.3% |
| Return per year (CAGR) | 2.2% |
| Worst drop from a high | −6.3% |
| Volatility (how much it swings) | 2.5% |
| Last 12 months | 1.8% |
| Last 3 years, per year | 4.9% |
| Last 5 years, per year | 3.0% |
| Last 10 years, per year | 3.0% |

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.

## VTIP returns by year

| Year | VTIP return |
| --- | --- |
| 2026 (part of the year) | 1.8% |
| 2025 | 6.1% |
| 2024 | 4.7% |
| 2023 | 4.6% |
| 2022 | −2.9% |
| 2021 | 5.4% |
| 2020 | 5.0% |
| 2019 | 4.9% |
| 2018 | 0.6% |
| 2017 | 0.8% |
| 2016 | 2.5% |
| 2015 | 0.2% |
| 2014 | −1.4% |
| 2013 | −1.5% |
| 2012 (part of the year) | 0.6% |

## What was VTIP's worst drop?

A drawdown is how far a fund falls from its last high point. VTIP's worst fall was −6.3%, from March 5, 2020 to March 18, 2020. It got back to that high on June 5, 2020.

The chart shows how far below its last high the fund was on each day. Big drops are normal for some funds. They matter because selling during a drop locks in the loss.

## Which Tactfolio strategies hold VTIP?

No classic strategy holds VTIP yet. You can add it to your own rules in the [builder](https://tactfolio.com/builder) and see how they would have done.

## How does VTIP compare with similar ETFs?

Funds that can stand in for VTIP:

- [SCHP](https://tactfolio.com/etf/schp.md): Schwab U.S. TIPS ETF, 0.03% a year
- [TIP](https://tactfolio.com/etf/tip.md): iShares TIPS Bond ETF, 0.18% a year
- [VGIT](https://tactfolio.com/etf/vgit.md): Vanguard Intermediate-Term Treasury ETF, 0.03% a year
- [IEF](https://tactfolio.com/etf/ief.md): iShares 7-10 Year Treasury Bond ETF, 0.15% a year

See [all 8 VTIP alternatives](https://tactfolio.com/alternatives/vtip.md), compared on the same dates as VTIP.

## Test VTIP in your own rules

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 see how a rule such as "hold it only above its 200-day average" would have done. Strategies run on daily prices and hold US stocks and ETFs only.

## The details

Prices come from Tactfolio's stored daily prices for VTIP. Each close is adjusted for splits, and dividends are reinvested on the day the fund pays them out. CAGR is the steady yearly return that turns the starting value into the ending value. Volatility is the yearly standard deviation of daily returns.

Fund facts come from Vanguard. We checked them on October 17, 2026. Read [what a backtest simulates](https://tactfolio.com/docs/backtests.md) and [how to read drawdown and CAGR](https://tactfolio.com/docs/concepts/reading-a-backtest.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 is the expense ratio of VTIP?

VTIP charges 0.03% a year, according to Vanguard as of October 17, 2026. That is about $3 a year for every $10,000 you hold.

### When did VTIP start trading?

VTIP started trading on October 12, 2012. It is run by Vanguard.

### What does VTIP track?

VTIP tracks the Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index. This fund owns US Treasury bonds called TIPS, whose value is adjusted for inflation.

### How much has VTIP returned per year?

From October 2012 to October 2026, VTIP returned about 2.2% a year with dividends reinvested. Its worst drop was −6.3%. Past returns do not tell you what it will do next.

### Which strategies use VTIP?

None of Tactfolio's classic strategies hold VTIP yet. You can test it in your own rules in the builder.

## Sources

- [Vanguard: Vanguard Short-Term Inflation-Protected Securities ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/vtip)

> 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.