Top 3 Inflation-Protected TIPS ETFs That Have Shown Strong Performance

Top 3 Inflation-Protected TIPS ETFs That Have Shown Strong Performance

Treasury Inflation-Protected Securities (TIPS) are a type of government-issued bond that provides protection against inflation. The value of TIPS increases with inflation and decreases with deflation, which means that their principal value is adjusted according to changes in the Consumer Price Index (CPI). This makes TIPS a popular investment choice for those who are seeking to hedge against inflation and preserve their purchasing power.

TIPS are issued by the U.S. Department of the Treasury and are backed by the full faith and credit of the U.S. government. They have a maturity period of up to 30 years, and interest is paid twice a year based on the inflation-adjusted principal value of the bond. TIPS offer a fixed interest rate and a guaranteed return of principal at maturity, making them a relatively low-risk investment.

Investors can purchase TIPS directly from the U.S. Treasury through its website, or through a broker. TIPS can also be held in a tax-advantaged account such as an IRA or a 401(k), which can provide additional tax benefits to investors.

One of the benefits of TIPS is that they provide a predictable, inflation-adjusted income stream, which can help investors maintain their standard of living in retirement. This is especially important for those on a fixed income who may be more vulnerable to the effects of inflation. TIPS can also help diversify an investment portfolio, as they tend to have a low correlation with other asset classes.

Another advantage of TIPS is that they can offer protection during times of economic uncertainty or inflationary pressure. As the CPI increases, the principal value of TIPS is adjusted upward, which can help investors offset the impact of inflation. This can provide a measure of stability during volatile market conditions and protect against loss of purchasing power.

Another way to invest in TIPS is through exchange-traded funds (ETFs), which provide exposure to a diversified portfolio of TIPS. In this article, we will discuss the top 3 inflation-protected TIPS ETFs that have shown strong performance, making them worth considering for investors looking to add some inflation protection to their portfolios.

1. iShares TIPS Bond ETF (TIP)

Fund Overview

Category Inflation-Protected Bond
Fund Family iShares (Blackrock)
Net Assets 23.04B
YTD Daily Total Return 1.25%
Yield 6.83%
Legal Type Exchange Traded Fund
Annual Report Expense Ratio 0.19%
Inception Date 12/04/2003


The iShares TIPS Bond ETF (TIP) is a popular exchange-traded fund that invests in U.S. Treasury Inflation-Protected Securities (TIPS). It is designed to provide investors with inflation protection by adjusting the principal value of the bonds for changes in the Consumer Price Index (CPI).

TIP has been a go-to investment option for those who want to guard their portfolio against the erosive effects of inflation, as it is considered a safe-haven asset. The ETF is managed by BlackRock, one of the world’s largest asset managers, and has been one of the best-performing TIPS ETFs in recent years. In this article, we will take a closer look at TIP and why it has shown strong performance as an inflation-protected investment.

2. Vanguard Short-Term Inflation-Protected Securities Index Fund (VTIP)

Fund Overview

Category Inflation-Protected Bond
Fund Family Vanguard
Net Assets 53.4B
YTD Daily Total Return 0.56%
Yield 6.79%
Legal Type Exchange Traded Fund
Annual Report Expense Ratio 0.04%
Inception Date 10/12/2012

The Vanguard Short-Term Inflation-Protected Securities Index Fund (VTIP) is an exchange-traded fund (ETF) that seeks to track the performance of the Bloomberg Barclays US Treasury Inflation-Linked Bond 0-5 Year Index. This index is composed of U.S. Treasury Inflation-Protected Securities (TIPS) that have maturities of less than five years.

The fund employs an indexing investment approach, which means it invests in a diversified portfolio of securities that replicate the index’s holdings. As a result, the fund’s returns closely track the index’s performance, providing investors with a low-cost, transparent way to invest in short-term TIPS. The fund’s objective is to provide investors with inflation protection and to provide a rate of return that corresponds to the performance of the index.

3. SPDR Portfolio TIPS ETF (SPIP)

Fund Overview

Category Inflation-Protected Bond
Fund Family SPDR State Street Global Advisors
Net Assets 2.16B
YTD Daily Total Return 1.26%
Yield 6.91%
Legal Type Exchange Traded Fund
Annual Report Expense Ratio 0.12%
Inception Date 05/25/2007

The SPDR Portfolio TIPS ETF (SPIP) is a popular exchange-traded fund that provides investors with exposure to Treasury Inflation-Protected Securities (TIPS). These securities offer investors protection against inflation by adjusting the principal value of the bond based on changes in the Consumer Price Index (CPI).

SPIP tracks the Bloomberg Barclays U.S. Treasury Inflation-Linked Bond Index, which includes TIPS with maturities of one to 30 years. The fund has a low expense ratio, making it an attractive option for investors who are looking to protect their portfolios against inflation while keeping costs low. Additionally, SPIP offers a high level of liquidity, making it easy for investors to buy and sell shares as needed. With its focus on inflation protection and low costs, SPIP is a popular choice among investors who want exposure to TIPS.

In conclusion, investing in TIPS ETFs can be a smart way to protect your portfolio against inflation, a key risk in any investment strategy. By investing in these inflation-protected securities, investors can help to ensure their purchasing power and returns are not eroded by rising prices. The iShares TIPS Bond ETF (TIP), Vanguard Short-Term Inflation-Protected Securities Index Fund (VTIP), and SPDR Portfolio TIPS ETF (SPIP) are all solid options to consider for investors looking to add TIPS exposure to their portfolio. It’s worth noting that as with any investment, past performance does not guarantee future results, and investors should always conduct their own due diligence before making any investment decisions.,This article is an original creation by If you wish to repost or share, please include an attribution to the source and provide a link to the original article.Post Link:

Like (2)
Previous February 11, 2023 6:28 pm
Next February 11, 2023 7:42 pm

Related Posts

  • The Ultimate Hedge Against A Recession And Interest Rate Reductions

    It seems that the Federal Reserve is in an unusual position: while raising interest rates to slow stronger-than-expected inflation, it is now experiencing financial instability concerns. As a result of the collapse of Silicon Valley Bank (SIVB) and the Federal Reserve’s intervention to support bank liquidity, yields sank dramatically across the board. Nevertheless, numerous factors suggest that the Federal Reserve may maintain elevated interest rates for an extended period, as persistent inflation and recent employment data indicate the need for further tightening measures. We maintain our stance that the Fed…

    March 18, 2023
  • An In-depth Look at Bond ETF – SPTL: Analysis and Investment Recommendations

    Introduction The SPDR Portfolio Long-Term Treasury ETF (SPTL) is an exchange-traded fund (ETF) designed to provide investors with exposure to long-term U.S. Treasury bonds. This article offers a comprehensive overview of SPTL, including its composition, historical performance, and factors that may impact its future performance. Additionally, we will provide investment recommendations for those considering adding SPTL to their investment portfolios. Composition of SPTL SPTL seeks to track the performance of the Bloomberg Barclays Long U.S. Treasury Index, a market-weighted index consisting of U.S. Treasury bonds with maturities of 10 years…

    March 18, 2023
  • Exploring the Advantages and Disadvantages of Single-Stock ETFs: A Comprehensive Guide

    Single-Stock ETF (Exchange-Traded Fund) is a type of ETF that holds shares of a single company rather than a basket of companies. A single-stock ETF is similar to an individual stock in that it is traded on an exchange and its price fluctuates based on supply and demand. However, unlike an individual stock, a single-stock ETF is managed by a professional fund manager who decides which shares to buy and sell, and it can be bought and sold like any other ETF. Single-stock ETFs provide investors with an easy and…

    January 24, 2023
  • Harnessing the AI Revolution: A Guide to the Top 4 AI ETFs for Future-Focused Investors

    Introduction The rapid advancements in artificial intelligence (AI) and its increasing influence on various industries have made it an attractive investment opportunity for many. As AI continues to revolutionize the way businesses operate, it presents a significant potential for growth and profitability. One way to gain exposure to this booming sector is through AI-focused exchange-traded funds (ETFs). In this blog post, we’ll introduce you to AI ETFs and explore the top four funds to consider for your investment portfolio. Understanding AI ETFs What are AI ETFs? AI ETFs are exchange-traded…

    April 6, 2023
  • TOP 3 High Dividend ETFs with Over 10% Yield for 2023

    ETF, or Exchange-Traded Fund, is a type of investment fund that is traded on stock exchanges, like individual stocks. An ETF holds a portfolio of assets, such as stocks, bonds, or commodities, and is designed to track the performance of a particular market index, sector, or theme. A dividend ETF is a type of ETF that invests primarily in dividend-paying stocks, with the goal of providing income through regular dividend payments to investors. These ETFs can provide exposure to a diverse portfolio of dividend-paying stocks, which can help to mitigate…

    February 2, 2023
  • Unveiling the Future of Investment – Cathie Wood’s ARK Investment Management and Its Innovative Funds

    Introduction In the world of finance and investment, few names have generated as much buzz in recent years as Cathie Wood and her firm, ARK Investment Management. As the founder, CEO, and CIO of ARK, Wood has disrupted the traditional investment landscape with her focus on disruptive innovation and high-growth potential. This blog post will introduce you to ARK Investment Management and its innovative funds, including ARKK, ARKW, ARKQ, ARKX, ARKG, and ARKF. ARK Investment Management: A Brief Overview Founded in 2014, ARK Investment Management is an investment management firm…

    March 22, 2023
  • Exploring Dividend ETFs and How to Choose the Best Fit for Your Investment Goals

    What Is a Dividend ETF? A dividend ETF is an exchange-traded fund that invests in stocks that pay dividends, which are regular payments made by a company to its shareholders from its profits. These funds provide investors with a way to earn regular income while also diversifying their portfolio. Dividend ETFs can be categorized by the types of dividend stocks they invest in, such as high dividend ETFs, dividend REIT ETFs, dividend growth ETFs, dividend aristocrat ETFs, and international high dividend ETFs. When choosing a dividend ETF, investors should consider…

    February 12, 2023
  • Unlocking the Potential of ETFs: 5 Key Insights for Investors

    Exchange-traded funds (ETFs) have revolutionized the investment landscape, offering investors a versatile and cost-effective way to access a wide range of assets. In this blog post, we’ll explore five essential aspects of ETFs that every investor should be aware of. 1. Not All ETFs are Created Equal One of the key attractions of ETFs is their cost-effectiveness. ETFs typically have lower expense ratios compared to traditional mutual funds. However, it’s crucial to note that not all ETFs are equally cheap. While many ETFs offer competitive expense ratios, some may be…

    September 29, 2023
  • Investing in the Future: An Introduction to AI-Focused ETFs

    AI-focused ETFs, or exchange-traded funds, are investment funds that primarily invest in companies that specialize in artificial intelligence technologies. These ETFs offer investors exposure to the rapidly growing field of AI, which is expected to have a significant impact on many industries in the coming years. In this article, we’ll explore the basics of AI-focused ETFs and what investors should consider before investing in them. What are AI-Focused ETFs? AI-focused ETFs are investment funds that invest in companies that are focused on artificial intelligence technologies. These companies may be involved…

    February 17, 2023
  • The Best Vanguard ETFs of 2023: A Comprehensive Guide to Diversified Investing

    Introduction Vanguard is one of the leading investment management companies globally, known for its low-cost, high-quality investment products, including index funds and exchange-traded funds (ETFs). Founded in 1975 by John C. Bogle, Vanguard has grown to manage trillions of dollars in assets and offers a wide range of ETFs to cater to various investment objectives and risk profiles. In this blog post, we will explore the best Vanguard ETFs of 2023, spanning various asset classes and investment strategies. About Vanguard Vanguard’s mission is to provide investors with low-cost, high-quality investment…

    May 2, 2023

Leave a Reply

Your email address will not be published. Required fields are marked *