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ETF Specialist

Best TIPS for You

Advice for inflation protection.


A version of this article appeared in the October 2020 issue of Morningstar ETFInvestor. Download a complimentary copy of Morningstar ETFInvestor by visiting the website.

Treasury Inflation-Protected Securities purchased directly from the United States Treasury and held until maturity provide a set real return, and so offer a simple method for inflation protection. Low-cost TIPS index funds are a less-than-perfect hedge against inflation, but they are worth considering for those concerned that inflation may exceed the market’s low expectations. The best way to get exposure to TIPS depends on the investor. Here’s a closer look at the key factors to keep in mind.

Neal Kosciulek does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.