The Schwab U.S. TIPS (NYSEArca: SCHP), which also tracks the same index as TIP, is the cheapest option in the category, with a 0.07% expense ratio, and comes with a 7.7 year effective duration.

TIPS returns are affected by interest-rate risk like other debt securities, but the inflation-protection aspect allows TIPS to fluctuate their principal value when the Consumer Price Index is adjusted.

Investors are advised to buy into TIPS before inflation has hit to capitalize on rising consumer prices.

“Buying TIPS after inflation has gone up means it has already been priced in and investors are possibly overpaying for their TIPS exposure,” according to Morningstar analyst Brian Moriarty.

Max Chen contributed to this article.