Data as of Oct 28, 2026.
VTIP vs VTWO: Differences, Returns & Fees
Over the year to Oct 28, 2026, VTIP returned +2.2% to VTWO's +14.3%; 0% of their weight is in the same names.
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Net assets on Sep 30, 2026: $20.9bn for Vanguard Short-Term Inflation-Protected Securities Index Fund ETF Shares and $16.6bn for Vanguard Russell 2000 ETF.
Pair scorecard
VTIP costs 0.03 points a year less; their one-year returns differ by 12.1 points; VTIP is 1.3 times larger.
| Measure | VTIP | VTWO |
|---|---|---|
| Return | ||
| Total return, 1 year | +2.2% | +14.3% |
| Drawdown | ||
| Below its high | 7.5%, high on Aug 14, 2026 | |
| Benchmark | ||
| What it tracks | Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Years Index | Russell 2000 Index |
| Cost and size | ||
| Expense ratio | 0.03% | 0.06% |
| Net assets, as of Sep 30, 2026 | $20.9bn | $16.6bn |
| Holdings | ||
| Holdings in common | 0% | |
| In the S&P 500, by weight | 0% | |
| Top ten holdings, share of the fund | 5.4% | |
Holdings in common uses holdings dated Sep 30, 2026. Method
Risk and return
Oct 26, 2012 to Oct 23, 2026 · 730 weekly returnsVTWO returned more: +313.8% to +35.7%. VTIP swung less: 2.3% to 20.8%. VTIP fell less at its worst: −5.5% to −40.2%.
Full scorecard
9 measures, with how each is measured Open ↓
| Measure | VTIP | VTWO | Edge | How it is measured |
|---|---|---|---|---|
| Return | ||||
| Total return | +35.7% | +313.8% | VTWO | Price change plus distributions, reinvested. |
| Annualized | +2.2% | +10.6% | VTWO | Total return as a yearly rate. |
| Price return | −2.1% | +242.4% | VTWO | Price change alone, distributions left out. |
| Risk | ||||
| Volatility | 2.3% | 20.8% | VTIP | Spread of weekly returns, annualized. Lower is steadier. |
| Downside deviation | 1.7% | 14.3% | VTIP | Like volatility, counting only weeks below the Treasury bill rate. |
| Max drawdown | −5.5% | −40.2% | VTIP | Deepest fall from a high to the low after it. |
| Risk-adjusted | ||||
| Sharpe | 0.17 | 0.50 | VTWO | Return above Treasury bills per unit of volatility. |
| Sortino | 0.22 | 0.73 | VTWO | Return above Treasury bills per unit of downside deviation. |
| Calmar | 0.40 | 0.26 | VTIP | Annualized return divided by the max drawdown. |
Computed by ETFIQ from Tiingo daily prices and ETFIQ's distribution records, 730 weekly returns. Cash rate: the 13-week Treasury bill.
What they share
By the books each fund has filed, VTIP and VTWO hold 0% of their money in the same securities at the same weight. Holdings dated Sep 30, 2026.
half
0% in common
Only in one fund ↓
Side by side
VTIP and VTWO on the fields both publish, as of Oct 28, 2026. Source: ETFIQ.
VTIP and VTWO do different jobs. What does each one do in a portfolio?
- What each follows. VTIP follows Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Years Index and VTWO follows Russell 2000 Index.
- Holdings in common. 0% of the weight is in the same securities (holdings dated Sep 30, 2026).
- One-year total return. Over 1 year to Oct 28, 2026 VTIP returned +2.2% and VTWO +14.3% with distributions reinvested, a gap of 12.1 points.
Data as of Oct 28, 2026.
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VTIP
VTIP tracks an index of Short-Term Inflation-Protected Securities. Over the year to Oct 28, 2026 it returned +2.2% with distributions reinvested. The prospectus expense ratio is 0.03% a year.
VTWO
VTWO tracks the Russell 2000. Over the year to Oct 28, 2026 it returned +14.3% with distributions reinvested, against +14.1% for its benchmark, the Russell 2000 Index. The prospectus expense ratio is 0.06% a year. By its holdings published by its issuer as of Sep 30, 2026, 0% of the fund by weight is stocks the S&P 500 also holds, across 2,002 positions, with the top ten at 5.4%. It sat 7.5% below its high of Aug 14, 2026 on Oct 28, 2026.
Questions people ask
- Which returned more over the last year, VTIP or VTWO?
- In the year to Oct 28, 2026, with distributions reinvested, VTIP returned +2.2% and VTWO +14.3%.
- Which is cheaper, VTIP or VTWO?
- VTIP is cheaper, by 0.03 percentage points a year. That is about $3 on $10,000 held for a year. Fees come from each fund's prospectus.
Links are sources, not endorsements. A comparison is not a recommendation.
How this is computed
Overlap adds up the smaller of the two weights for each security both funds hold.
Cite this pageCitation, APA and Markdown
ETFIQ, VTIP against VTWO, data as of Oct 28, 2026. https://etfiq.com/compare/any/vtip-vs-vtwo
ETFIQ. (Oct 28, 2026). VTIP against VTWO. Retrieved from https://etfiq.com/compare/any/vtip-vs-vtwo
[VTIP against VTWO (ETFIQ, Oct 28, 2026)](https://etfiq.com/compare/any/vtip-vs-vtwo)
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