SPDR Portfolio TIPS ETF SPIP is a decent choice for exposure to U.S. Treasury Inflation-Protected Securities because it provides exposure to the full spectrum of the TIPS market for a reasonably low fee. This is a sensible approach because it is hard for active managers to recoup their fees without taking additional risk or investing away from the TIPS market. Despite its cost advantage, there are cheaper index alternatives. Consequently, it warrants a downgrade to a Morningstar Analyst Rating of Bronze from Silver.
SPDR® Portfolio TIPS ETF SPIP
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Morningstar’s Analysis
The Morningstar Analysis section contains a thorough evaluation of an investment’s merits and drawbacks and often discusses the most important or decisive factors leading to the fund’s overall rating.
The Morningstar Analysis section contains a thorough evaluation of an investment’s merits and drawbacks and often discusses the most important or decisive factors leading to the fund’s overall rating.
Will SPIP outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
Process Pillar
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable SPIP’s performance objective and investment process is for both security selection and portfolio construction.
People Pillar
The People Pillar is our evaluation of the SPIP management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
Parent Pillar
The Parent Pillar is our rating of SPIP’s parent organization’s priorities and whether they’re in line with investors’ interests.
This is a solid strategy, but there are cheaper alternatives for similar exposure.
