iShares Files for TIPS ETF | ETF Trends

In anticipation of an inflationary environment, iShares has filed for a short-term TIPS exchange traded fund (ETF).

TIPS – or, if you’re not into brevity, Treasury Inflation-Protected Securities – are a way for investors to hedge against inflation. TIPS are similar to regular Treasury bonds in that they have the same credit risk – effectively none – and they’re issued by the government. But the difference is how they pay the coupon. [Your TIPS Questions Answered.]

The iShares Barclays 0-5 Year TIPS Bond Fund will hold TIPS with a maturity of five years or less.

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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.