Additionally, the Schwab U.S. TIPS (NYSEArca: SCHP) has an effective duration of  7.64 years and a 7.11% 30-day SEC yield. SCHP also comes with a cheap 0.07% expense ratio.

Along with other fixed-income funds, TIPS ETFs are susceptible to changes in the interest rates and could underperform in a rising rate environment. Consequently, investors can go down the yield curve to hedge against rate risk. For instance, the PIMCO 1-5 Year U.S. TIPS ETF (NYSEArca: STPZ) and Vanguard Short-Term Inflation-Protected Securities ETF (NYSEArca: VTIP) provide short-term TIPS options.

VTIP has a 2.5 year duration, a -1.17% 30-day SEC yield and a 0.10% expense ratio. STPZ shows a 2.57 year duration, a 3.65% 30-day SEC yield and a 0.20% expense ratio.

With inflation beginning to inch higher, investors should being to think about ways to hedge their exposure. [Increasing Demand to Hedge Inflation with TIPS, ETFs]

For more information on Treasury Inflation Protected Securities, visit our TIPS category.