Vanguard Short-Term Inflation-Protected Securities ETF

Frequently Asked Questions About VTIP

What does VTIP invest in?

This exchange-traded fund seeks to mirror an index tracking U.S. Treasury inflation-protected securities (TIPS) with maturities of less than five years. It is designed to produce returns closely aligned with actual short-term inflation and aims to provide investors with a more stable investment profile compared to TIPS funds holding longer-dated assets. Due to its shorter duration, the fund typically incurs less real interest rate risk, though this often translates to lower overall returns when compared to longer-duration TIPS funds. Its portfolio consists of bonds guaranteed by the U.S. government, with their principal value adjusted twice a year according to inflation, thereby offering a safeguard against unforeseen increases in inflation.

What is the expense ratio of VTIP?

Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) charges an expense ratio of 0.03%. This is the annual fee deducted from fund assets to cover management and operations.

What is VTIP's dividend yield?

VTIP's trailing-twelve-month yield is 4.15%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of VTIP?

Effective duration measures VTIP's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. VTIP's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of VTIP?

VTIP's credit quality breakdown — the share of holdings rated AAA through CCC and below — is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of VTIP?

Yield to maturity (YTM) is the total return you'd earn from VTIP if every bond in the portfolio is held to maturity at the current price. VTIP's YTM is published on the fund's factsheet on the issuer's website — it differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.