Fixed Income

Inflation-Protected Bonds ETFs

TIPS pay a real yield on top of CPI adjustments. Long TIPS funds still lose money when real rates rise, which surprises people who bought them as an inflation hedge. Short-duration TIPS track realized inflation much more closely.

Theme performance

Equal-weighted across every fund in this objective

1Y: +5.3%
5Y ann.: +2.9%
10Y ann.: —
All-time ann.: —

Sort4 funds

VTIP

Vanguard Short-Term Inflation-Protected Securities ETF

Vanguard

TIPS maturing in under five years: tracks realized inflation with far less rate risk.

Fee: 0.03%
AUM: $14.9B
Yield: 3.6%

1Y: +5.1%
5Y ann.: +3.6%
10Y ann.: —
Max ann.: —

TIP

iShares TIPS Bond ETF

iShares

The full TIPS curve. Principal grows with CPI, but the fund still moves with real rates.

Fee: 0.18%
AUM: $14.6B
Yield: 3.4%

1Y: +5.6%
5Y ann.: +2.1%
10Y ann.: —
Max ann.: —

STIP

iShares 0-5 Year TIPS Bond ETF

iShares

The iShares version of short TIPS; the closest thing to an inflation-linked cash holding.

Fee: 0.03%
AUM: $12.4B
Yield: 3.6%

1Y: +5.0%
5Y ann.: +3.5%
10Y ann.: —
Max ann.: —

SCHP

Schwab US TIPS ETF

Schwab

Same broad TIPS exposure as TIP at a third of the fee.

Fee: 0.03%
AUM: $12.1B
Yield: 3.5%

1Y: +5.7%
5Y ann.: +2.2%
10Y ann.: —
Max ann.: —