Inflation-Protected Bonds Category Report
Last modified: December 1, 2009
The Inflation-Protected Bonds ETFdb Category contains 6 ETFs with a total market capitalization of approximately $19.5 billion (as of December 1, 2009).
The following are the three largest ETFs in this ETFdb Category by market capitalization (as of December 1, 2009):
| Ticker | ETF | Market Cap |
|---|---|---|
| TIP | iShares Barclays TIPS Bond Fund | $18.1 billion |
| WIP | State Street SPDR DB International Government Inflation-Protected ETF | $927 million |
| IPE | State Street SPDR Barclays Capital TIPS ETF | $346 million |
View all ETFs in this ETFdb Category
The Inflation-Protected Bonds ETFdb Category includes funds that invest in Treasury Inflation-Protected Securities (TIPS). The principal of TIPS increases with inflation, as measured by the Consumer Price Index (CPI). When a TIPS matures, holders are paid the greater of the original principal or inflation-adjusted principal (meaning that investors will not be harmed in deflationary environments).
A common misconception about TIPS is that the coupon rate changes with inflation. Actually, TIPS pay interest twice per year at a fixed rate. Since the fixed rate is applied to an adjusted principal amount, however, the effect is a coupon payment that increases with inflation.
ETFs in this ETFdb Category hold bonds across a variety of maturities, including:
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