Morningstar Rating

ETF Research and Analysis

by Abby Woodham
Suitability
IShares Barclays TIPS Bond TIP is the largest exchange-traded fund for Treasury Inflation-Protected Securities. TIP tracks a broad, cap-weighted TIPS bond index, and it includes any issuance with more than a year left until   Read more 

Bull Case

TIPS let investors hedge against unexpected inflation: the possibility that the future rate of inflation is higher than the market expects.
The market's expected rate of future inflation is well below the historical average rate of inflation. TIPS might still be inexpensive.
TIP is the largest and most liquid TIPS ETF. Read more 

Bear Case

TIPS funds like TIP are not correlated with inflation, so an investment in TIP will not guarantee preserved purchasing power over any time period.
TIP's long duration means it is exposed to interest-rate risk.
If the market overestimates the future rate of inflation, Treasuries will outperform TIPS. Read more 

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