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.
| Segment | Fixed Income: U.S. - Government, Inflation-linked Investment Grade |
| Category | Government, Inflation-linked |
| Focus | Investment Grade |
| Niche | Broad Maturities |
| Strategy | Vanilla |
| Weighting Scheme | Market Value |
This section compares how balanced and deep this ETF is relative to its peers.
| TIP | ETF Database Category Average | FactSet Segment Average | |
|---|---|---|---|
| Number of Holdings | 51 | 34 | 29 |
| % of Assets in Top 10 | 36.89% | 59.69% | 65.43% |
| % of Assets in Top 15 | 52.59% | 73.15% | 75.96% |
| % of Assets in Top 50 | 99.97% | 97.02% | 100.00% |
| TIP | ETF Database Category Average | FactSet Segment Average | |
|---|---|---|---|
| Large (>12.9B) | N/A | N/A | N/A |
| Mid (>2.7B) | N/A | N/A | N/A |
| Small (>600M) | N/A | N/A | N/A |
| Micro (<600M) | N/A | N/A | N/A |
This section compares the P/E ratio of this ETF to its peers.
This section compares the dividend yield of this ETF to its peers.
| TIP | ETF Database Category Average | FactSet Segment Average | |
|---|---|---|---|
| Dividend | $ 0.31 | $ 0.15 | $ 0.13 |
| Dividend Date | 2023-06-01 | N/A | N/A |
| Annual Dividend Rate | $ 4.65 | $ 2.01 | $ 1.77 |
| Annual Dividend Yield | 4.32% | 4.63% | 3.95% |
View charts featuring TIP price and volume data.
View charts featuring ETF fund flow data.
5 Day Net Flows: -96.92 M 1 Month Net Flows: -301.89 M 3 Month Net Flows: -315.16 M 6 Month Net Flows: -2.57 B 1 Year Net Flows: -6.63 B 3 Year Net Flows: 6.23 B 5 Year Net Flows: 400.99 M 10 Year Net Flows: 7.22 BView charts that break down the influence that fund flows and price had on overall assets.
5 Day Net AUM Change: -107.11 MThe adjacent table shows a Realtime Rating for several different metrics, including liquidity, expenses, performance, volatility, dividend, concentration of holdings in addition to an overall rating. The "A+ Metric Rated ETF" field, available to ETF Database Pro members, highlights the best rated ETF in the Inflation-Protected Bonds category for each metric. To view information on how the ETF Database Realtime Ratings work, click here.
This section compares the cost efficiency of this ETF to its peers.
| Max ST Capital Gains Rate | 39.60% |
| Max LT Capital Gains Rate | 20.00% |
| Tax On Distributions | Ordinary income |
| Distributes K1 | No |
This section shows how this ETF has performed relative to its peers. Returns over 1 year are annualized.
| TIP |
ETF Database
Category Average |
Factset Segment
Average |
|
|---|---|---|---|
| 1 Month Return | -1.49% | -1.68% | -2.17% |
| 3 Month Return | 0.76% | 1.09% | 1.28% |
| YTD Return | 2.24% | 1.85% | 1.10% |
| 1 Year Return | -4.41% | -3.94% | -3.55% |
| 3 Year Return | 0.29% | 1.09% | -0.24% |
| 5 Year Return | 2.50% | 2.11% | 1.12% |
The following charts reflect the geographic spread of TIP's underlying holdings.
The following charts reflect the allocation of TIP's underlying holdings.
| Asset | Percentage |
|---|---|
| Sovereign | 98.12% |
| Other | 1.61% |
| CASH | 0.29% |
| Bond Sector | Percentage |
|---|
| Maturity | Percentage |
|---|---|
| Less Than 1 Year | 0.0% |
| 1-3 Years | 0.0% |
| 3-5 Years | 0.0% |
| 5-7 Years | 0.0% |
| 7-10 Years | 0.0% |
| 10-15 Years | 0.0% |
| 15-20 Years | 0.0% |
| 20-30 Years | 0.0% |
| 30+ Years | 0.0% |
| Asset | Percentage |
|---|---|
| Sovereign | 98.12% |
| Other | 1.61% |
| CASH | 0.29% |
This section shows how the volatility of this ETF compares to the peer group ETF Database Category.
| 5 Day Volatility | 76.25% |
| 20 Day Volatility | 4.20% |
| 50 Day Volatility | 5.60% |
| 200 Day Volatility | 7.59% |
| Beta | 0.19 |
| Standard Deviation | 2.54% |
ETF Database's Financial Advisor Reports are designed as an easy handout for clients to explain the key information on a fund. Includes new analyst insights and classification data.
Fact sheets are issued by the ETF provider and framed by ETF Database. Information contained within the fact sheet is not guaranteed to be timely or accurate.
Here is a look at ETFs that currently offer attractive income opportunities. The high-yield...
Here is a look at ETFs that currently offer attractive income opportunities. The high-yield...
Here is a look at ETFs that currently offer attractive income opportunities. The high-yield...
ETF Trends and ETF Database , the preeminent digital platforms for ETF news, research, tools, video, webcasts, native content channels, and more. The ETF Trends and ETF Database brands have been trusted amongst advisors, institutional investors, and individual investors for a combined 25 years. The firms are uniquely positioned to aid advisor’s education, adoption, and usage of ETFs, as well as the asset management community’s transition from traditionally analog to digital interactions with the advisor community.
Our team at ETF Database is committed to making our website the premier source of information on ETF investing with the world’s highest quality ETF tools, content, and resources.
ETF Database analysts have a combined 50 years in the ETF and Financial markets, covering every asset class and investment style. The team monitors new filings, new launches and new issuers to make sure we place each new ETF in the appropriate context so Financial Advisors can construct high quality portfolios.
Copyright © 2023 FactSet Research Systems Inc. All rights reserved.
A long-running debate in asset allocation circles is how much of a portfolio an investor should...
In a digital age where information moves in milliseconds and millions of participants can transact...