TIPs ETFs to Hedge Against Inflation Risk

List of TIPs ETFs

tips etfs
traffic_analyzer/DigitalVision Vectors/Getty Images

There’s no doubt that investors are concerned with inflation. And as most sound investors do, they look to manage their risk. So hedging against inflation risk can be very important for financial protection.

And one way to offset some inflation risk is to include TIPs ETFs(or ETNs) in your portfolio. TIP funds and notes are mini portfolios of inflation protected securities designed to rise in value as inflation increases.

So you will have some gains if inflation has a negative impact on your investing strategy - a nice way to hedge.

However, the nice thing about TIP ETFs is that as inflation falls, you have some downside protection on your TIP funds. The government will guarantee the face value of the bonds in the fund. So there is a point where the value of ETF caps out to the downside. A nice feature.

And there are quite a few different types of TIPs ETFs. There are leveraged funds, international funds, and long and short-term funds. So it’s nice to have the diversity as well.

And one of the best advantages of ETFs is the ability to enter certain markets without loading up on equities or battling index basket pricing. Instead you can get instant exposure with one easy transaction.

So for those who have a need to watch inflation risk, then an ETF might make sense for your trading strategy. 

So if this type of ETF sounds like a fit for your portfolio, check out the list of TIPs and inflation protection ETFs below…

Updated List of TIPs ETFs and ETNs

  • CPI - IQ CPI Inflation Hedge ETF
  • GTIP - iShares Global Inflation Linked Bond Fund
  • ILB - Global Advantage Inflation Linked Bond Strategy ETF
  • IPE - SPDR Barclays Capital TIPS ETF
  • ITIP - iShares International Inflation Linked Bond Fund
  • LTPZ - PIMCO 15+ Year US TIPS Index ETF
  • SIPE - SPDR Barclays 0 - 5 Year TIPS ETF
  • STIP - iShares Barclays 0 - 5 Year TIPS ETF
  • STPP - iPath US Treasury Steepener ETN
  • STPZ - PIMCO 1 - 5 Year US TIPS Index ETF
  • TDTF - Flex Shares iBoxx 5 Year Target Duration TIPS Index Fund
  • TDTT - Flex Shares iBoxx 3 Year Target Duration TIPS Index Fund
  • TIP - iShares Barclays TIPS Bond ETF
  • TIPZ - PIMCO Broad U.S. TIPS Index ETF
  • TPS - ProShares Ultra Short TIPS ETF
  • WIP - SPDR DB International Government Inflation-Protected Bond ETF
  • FINF - ProShares Short 30 Year TIPS TSY Spread ETF
  • RINF - ProShares 30 Year TIPS TSY Spread ETF
  • VTIP - Vanguard Short Term Inflation Protected Securities Index ETF
  • TIPX - SPDR Barclays 1 - 10 Year TIPS ETF

So that should have you covered for any investing strategy you want to utilize with TIPs funds and notes, hopefully utilizing exchange traded products. And as more TIPS funds or notes come to market or if any are closed or redeemed, I'll be sure to update this list, so be sure to check back often.

And as with any investment, a company stock, an ETF, mutual fund,Index or otherwise, please make sure you thoroughly research this exchange traded fund or any financial asset before making any trades (long or short). Conduct your due diligence, watch how these funds react to different market conditions, take a look under the hood and see what is in the funds.

And if you have any questions or concerns, make sure you consult a stock broker, a financial advisor, or another financial industry professional.

While ETFs have many advantages, they have many disadvantages as well (as does any investment). So it is very important to understand the investment vehicle before you trade it. But once you have a full understanding on these TIPs ETFs, you can consider adding either or both to your portfolio. And good luck with all of your trades!

Disclaimer: At the time of publication of this ETF list of TIPs ETFs, I do not have any open positions in the above funds - Mark Kennedy