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iShares TIPS Bond ETF TIP

Analyst rating as of
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Morningstar’s Analysis

Will TIP outperform in future?

Get our overall rating based on a fundamental assessment of the pillars below.

A solid strategy for TIPS exposure, but there are cheaper alternatives.

Summary

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IShares TIPS Bond ETF TIP is a decent choice for exposure to US Treasury Inflation-Linked Bonds because it provides exposure to the entire Treasury Inflation-Protected Securities yield curve 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.

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