ETFdb Realtime Rating & Analyst Report for TIP
TIP is a passive ETF that seeks to replicate the Barclays Capital U.S. Treasury Inflation Protected Securities (TIPS) Index (Series-L). The index includes all publicly issued, U.S. Treasury inflation-protected securities that have at least one year remaining to maturity, are rated investment grade, and have $250 million or more of outstanding face value.
| ETFdb Category | Expense Ratio | Inception Date | Issuer | Structure | YTD Return * |
|---|---|---|---|---|---|
| Inflation-Protected Bonds | 0.20% | 2003-12-04 | iShares | ETF | +3.43% |
* As of 05-24-2012
TIP Realtime Rating: By Metric
| Metric | Metric Realtime Rating | A+ Metric Rated ETF |
|---|---|---|
| Liquidity | A+ | TIP |
| Expenses | A- | SCHP |
| Performance | B | LTPZ |
| Volatility | A- | STIP |
| Dividend | A | WIP |
| Concentration | A- | ITIP |
The first adjacent table gives investors an individual Realtime Rating for TIP on several different metrics, including liquidity, expenses, performance, volatility, dividend, and concentration of holdings. The "A+ Metric Rated ETF" field, available to ETFdb Pro members, shows the ETF in the Inflation-Protected Bonds ETFdb Category with the highest Metric Realtime Rating for each individual field.
TIP Realtime Rating: Overall
| ETFdb Rating Type | Overall Rating | A+ Overall Rated ETF |
|---|---|---|
| Realtime Rating (Overall) | A+ | TIP |
The second table shows the overall Realtime Rating for TIP, as well as the A+ Overall Rated ETF in TIP's Category. To view information on how the ETFdb Realtime Ratings work, click here.
ETFdb Analyst Report for TIP
Asset Allocation
This ETF offers broad-based exposure to TIPS, bonds issued by the U.S. government featuring principal that adjusts based on certain measures of inflation. TIP has become tremendously popular as a way of protecting asset values against upticks in inflation, and as such can be used in different ways by a number of different types of investors. This ETF may have appeal as a tactical play when concerns about inflationary pressures intensify, or may be used as a core holding in a long-term, but-and-hold portfolio. As a very low risk asset, TIP will generally feature a relatively meager yield. TIP is one of several broad TIPS ETFs; and it is arguably the most famous of the bunch as it has by far the most assets in the Category. This fund is competitive from a cost perspective and offers up unmatched liquidity, making it worthy of consideration for any investors seeking exposure to this corner of the bond market. While TIPS have become popular as a means of protecting against inflation, it is noted that there are potential limitations to this asset class in accomplishing this objective as well. TIP is by no means a surefire defense against inflation; rising interest rates, which tend to accompany upticks in CPI, have the potential to erode the value of this fund. Short-term TIPS ETFs such as STIP or STPZ may be forth a closer look, as well as more creative alternatives such as CPI, RRF or other real return ETFs.
TIP In-Depth
The following tables and charts contain in-depth metrics for TIP and compare it to similar peer ETFs within its ETFdb Category.
Expense Analysis
This section compares the cost efficiency of TIP to peers in the same ETFdb Category.
| TIP | ETF Average | ETF Wtd. Avgerage |
|---|---|---|
| 0.20% | 0.59% | 0.32% |
Comparative Analysis: Inflation-Protected Bonds ETFdb Category
| Lo | Average | Hi | TIP Rank |
|---|---|---|---|
| SCHP: 0.14% | 0.28% | ILB: 0.60% | 5 of 13 |
Commission Free Trading in TIP
TIP is currently available for commission free trading on the following platforms: TD Ameritrade, Fidelity. There are 2 other ETFs in the Inflation-Protected Bonds ETFdb Category that are also eligible for commission free trading: SCHP (Charles Schwab), WIP (TD Ameritrade).
Performance Analysis
This section shows how TIP has performed relative to its peer group ETFdb Category.
| TIP | Category Lo | Category Hi | TIP Rank | |
|---|---|---|---|---|
| 1 Week* | 0.03% | ITIP: -1.57% | ILB: 0.34% | 3 of 13 |
| 4 Week* | 0.86% | ITIP: -5.52% | LTPZ: 2.30% | 3 of 12 |
| 13 Week* | 1.45% | ITIP: -7.09% | LTPZ: 3.93% | 5 of 12 |
| 26 Week* | 3.29% | STIP: 0.83% | WIP: 6.05% | 5 of 12 |
| YTD* | 3.43% | GTIP: 0.45% | LTPZ: 6.13% | 5 of 12 |
| 1 Year* | 12.15% | ITIP: -4.41% | LTPZ: 26.79% | 5 of 10 |
| 3 Year* | 31.37% | WIP: 23.09% | IPE: 32.43% | 2 of 3 |
| 5 Year* | 47.92% | TIP: 47.92% | TIP: 47.92% | 1 of 1 |
* As of 05-24-2012
Volatility Analysis
This section shows how the volatility of TIP compares to the peer group ETFdb Category.
| TIP | Category Lo | Category Hi | TIP Rank | |
|---|---|---|---|---|
| Volatility: 5 Day* | 5.10% | STPZ: 0.26% | WIP: 37.16% | 8 of 13 |
| Volatility: 20 Day* | 2.80% | STIP: 0.93% | LTPZ: 7.88% | 7 of 12 |
| Volatility: 50 Day* | 3.83% | STIP: 1.11% | LTPZ: 9.62% | 9 of 12 |
| Volatility: 200 Day* | 4.59% | STIP: 1.39% | LTPZ: 10.32% | 7 of 12 |
| Beta* | -0.25 | LTPZ: -0.62 | ITIP: 0.63 | 9 of 12 |
| Standard Deviation* | 3.45% | STPZ: 0.40% | LTPZ: 3.91% | 2 of 9 |
* As of 05-24-2012
Technical Analysis
This section highlights technical strength metrics for TIP.
| Moving Averages * | Support & Resistance * | Williams & Rel. Strength * | |||
|---|---|---|---|---|---|
| 20 Day MA | $119.69 | Lower Bolinger (10Day) | $119.39 | Williams % (10) | 42.94 |
| 60 Day MA | $118.44 | Upper Bolinger (10Day) | $120.92 | Williams % (20) | 34.11 |
| MACD 15 Day | 0.37 | Lower Bolinger (30Day) | $118.08 | Rel. Strength (10) | 64 |
| MACD 100 Day | 2.13 | Upper Bolinger (30Day) | $120.66 | Rel. Strength (20) | 63 |
| Support Level | $120.15 | Rel. Strength (30) | 61 | ||
| Resistance Level | $120.40 | ||||
* As of 05-24-2012
Dividend & Valuation Analysis
This section shows how the dividend yield and P/E multiple of TIP compare to the peer group ETFdb Category.
| TIP | Category Lo | Category Hi | TIP Rank | |
|---|---|---|---|---|
| Annual Dividend Yield* | 2.99% | TDTT: 0.14% | WIP: 4.52% | 2 of 12 |
| P/E Ratio* | n/a | IPE: n/a | GTIP: n/a | 6 of 10 |
* As of 05-24-2012
Concentration Analysis
This section compares how balanced and deep TIP is relative to the peer group ETFdb Category.
| TIP | Category Lo | Category Hi | TIP Rank | |
|---|---|---|---|---|
| Number Of Holdings** | 36 | LTPZ: 10 | ITIP: 100 | 9 of 12 |
| % Assets In Top 10** | 46.32% | ITIP: 24.38% | LTPZ: 99.40% | 5 of 12 |
**As of 2012-05-03
ETF X-Ray**
This section provides a look under the hood of TIP.
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**As of 2012-05-03
Alternative ETFs
Other ETFs in the Inflation-Protected Bonds ETFdb Category include:
| Type | Ticker | Expense Ratio | Assets | Avg. Daily Vol | YTD Return |
|---|---|---|---|---|---|
| Cheapest | SCHP | 0.14% | $437.5 M | 63,770 | 3.48% |
| Largest (AUM) | WIP | 0.50% | $1,264.3 M | 195,684 | 3.03% |
| Most Liquid (Volume) | WIP | 0.50% | $1,264.3 M | 195,684 | 3.03% |
| Top YTD Performer | LTPZ | 0.20% | $355.1 M | 37,423 | 6.13% |
© 2012 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
