Bonds and Treasuries will loss value as living costs increase. However, TIPS are indexed to inflation as a way to hedge against rising consumer prices.
The iShares TIPS Bond ETF (NYSEArca: TIP), the largest TIPS-related ETF, has gained 2.7% year-to-date while the iShares 7-10 Year Treasury Bond ETF (NYSEArca: IEF) is up 3.6% so far this year. TIP has a real yield duration of 7.69 years and a 1.86% 30-day SEC yield. IEF has a 7.64 year duration and a 2.35% 30-day SEC yield.
iShares TIPS Bond ETF
For more information on Treasury Inflation-Protected Securities, visit our TIPS category.
Max Chen contributed to this article.