Investors added $638 million to iShares Barclays TIPS Bond Fund last month.
With TIPS, the bonds’ principal is linked to changes in the CPI
However, it’s important to remember that since the ETFs invest in Treasury bonds, they can be hurt by rising yields.
“TIPS will not perform well if real yields rise along with rising interest rates,” said Russ Koesterich, iShares chief investment strategist. [Investors Buying TIPS ETF for Inflation Protection]
Other ETFs for this asset class include PIMCO 1-5 Year TIPS (NYSEArca: STPZ), SPDR Barclays Capital TIPS (NYSEArca: IPE) and Schwab U.S. TIPS (NYSEArca: SCHP).
iShares Barclays TIPS Bond Fund
