Worried About Inflation? What to Know Before Buying TIPS ETFs

Dan Sotiroff, senior manager research analyst for Morningstar Research Services, explains how TIPS ETFs work, their performance in 2025, and what to consider before buying the treasury inflation-protected securities.
Key Takeaways:
What Are TIPS?
TIPS ETFs vs. TIPS
Flows Into TIPS ETFs in 2025 Surprises Morningstar’s ETFInvestor Editor
How TIPS Have Performed Against the Bond Market in 2025
How Higher-for-Longer Interest Rates Could Create Higher Risk
Should Investors Look to Short- or Long-Term TIPS During Market Volatility?
What’s the Best Account to Hold TIPS ETFs?
Who Should Invest in TIPS ETFs?
2 Top TIPS ETFs Picks

Read about topics from this episode.
Subscribe to Morningstar’s ETFInvestor newsletter. (newsletters.morningstar.com/mei/learn)
TIPS Funds Gain on Fears of Inflation and Economic Downturn (morningstar.com/bonds/tips-funds-gain-fears-in…)
How to Use TIPS in Your Portfolio (morningstar.com/portfolios/how-use-tips-your-p…)
Why the Fed May Wait Until July to Cut Interest Rates (morningstar.com/economy/why-fed-may-wait-until…)
Inflation Was Softer in April, but Tariff Impacts Still Loom (morningstar.com/economy/inflation-was-softer-a…)
What Now? An Investor’s To-Do List for Chaotic Markets (morningstar.com/portfolios/what-now-an-investo…)
Morningstar′s Guide to ETF Investing (morningstar.com/funds/morningstars-guide-etf-i…)
How to Think About Time Horizons in Bond Investing (morningstar.com/bonds/how-think-about-time-hor…)
6 Top-Performing TIPS Funds (morningstar.com/funds/6-top-performing-tips-fu…)
3 Defensive ETFs for Current Volatility (morningstar.com/funds/3-defensive-etfs-current…)

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Read what our team is writing:
Daniel Sotiroff (morningstar.com/people/daniel-sotiroff)
Ivanna Hampton (morningstar.com/people/ivanna-hampton)

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