TIPS ETFs Outperform Treasuries as Inflation Outpaces Yield

“Negative real rates will remain in place for at least a decade — and maybe a generation,” said Andrew Garthwaite, a global strategist at Credit Suisse Group, in the Bloomberg report.

TIPS are fixed-income securities with principal tied to changes in the Consumer Price Index. However, it’s important to remember that TIPS can still be hurt by rising yields like regular Treasury bonds. [TIPS ETFs: Inflation Protection Still Has Risks]

iShares Barclays Treasury Inflation Protected Securities Bond Fund

Full disclosure: Tom Lydon’s clients own TIP.