Finder makes money from featured partners, but editorial opinions are our own. Advertiser disclosure

3 of the best TIPS ETFs to beat inflation

If you’re worried about inflation, consider this investment option.

US Treasury inflation-protected securities (TIPS) are bonds the US government issues. The inflation protection comes in the form of face value adjustments by the US Treasury based on the Consumer Price Index (CPI), which is the main measure of inflation.
TIPS ETFs may not perform as well as other ETFs, such as technology, growth or even dividend ETFs in the long term, but in times of inflation, they can be a worthwhile investment. They’re also a hedge against future inflation. In a deflationary economy, however, TIPS ETFs will perform poorly compared to other types of bonds and ETFs.

3 TIPS ETFs to consider

TIPS ETFs give you access to these inflation-protected bonds without directly buying the bonds. Due to the nature of the investment, TIPS ETFs that access US bonds perform roughly the same.
I compared 16 TIPS ETFs and chose the top three that offered the highest year-to-date (YTD) returns or that had the highest one-year returns. Two of these ETFs track either a different measure of inflation or track the TIPS in other countries, which is why they outperform the rest.

1. ProShares Inflation Expectations ETF (RINF)

This ETF is the best performer out of all TIPS ETFs. It also outperforms many other types of ETFs. The ProShares Inflation Expectations ETF tracks the FTSE 30-Year TIPS Index. The index is designed to measure the performance of the Break Even Rate of Inflation (BEI), which is a different measure of inflation than the standard. Other ETFs track the standard measure, which is the CPI. This is why the performance of this ETF and other TIPS ETFs differ.

  • YTD gain (June 2021): 11.99%
  • 1-year gain (June 2021): 25.37%
  • Expense ratio: 0.30%

2. SPDR FTSE International Government Inflation-Protected Bond ETF (WIP)

This ETF provides exposure to inflation-linked bonds of developed and emerging market countries. The way the ETF does that is by tracking the FTSE International Inflation-Linked Securities Select Index. As of February 28, 2021, the index covered the following countries: Australia, Brazil, Canada, Chile, Colombia, France, Germany, Israel, Italy, Japan, Mexico, New Zealand, South Africa, South Korea, Spain, Sweden, Turkey and the United Kingdom.

  • YTD gain (June 2021): -1.14%
  • 1-year gain (June 2021): 10.17%
  • Expense ratio: 0.50%

3. iShares TIPS Bond ETF (TIP)

iShares TIPS Bond ETF TIP offers direct exposure to the entire Treasury Inflation-Protected Securities yield curve for one of the lowest fees. This ETF tracks the Bloomberg Barclays US Treasury Inflation-Linked Bond Index, which includes US TIPS with at least one year until maturity.

  • YTD gain (June 2021): 0.02%
  • 1-year gain (June 2021): 4.92%
  • Expense ratio: 0.19%

Compare trading platforms

1 - 8 of 8
Name Product Ratings Available asset types Stock trade fee Minimum deposit Cash sweep APY Signup bonus
Tastytrade
Finder Score: 4.4 / 5: ★★★★★
Tastytrade
★★★★★
Stocks, Options, ETFs, Cryptocurrency, Futures, Treasury Bills
$0
$0
N/A
Get $50-$5,000
Competitive, capped options commissions, with a reliable trading platform designed for serious traders.
SoFi Invest®
Finder Score: 4.2 / 5: ★★★★★
SoFi Invest®
★★★★★
Stocks, Options, Mutual funds, ETFs, Alternatives
$0
$0
0.02%
Get up to $10,000 cash
Commission-free stocks, ETFs and options, with no options per-contract fees. Plus, a no-cost robo-advisor and complimentary access to certified financial planners (CFPs).
OPTO
Not rated yet
OPTO
Stocks, ETFs
$0
$0
N/A
Earn up to $300
AI-driven thematic investing, with proprietary research, fractional shares and commission-free stocks and ETFs.
Cash App
Finder Score: 3 / 5: ★★★★★
Cash App
★★★★★
Stocks, ETFs, Cryptocurrency
$0
$0
4.5%
N/A
Buy and sell over 1,800 stocks and ETFs commission-free and for as little as $1.
Robinhood
Finder Score: 4.4 / 5: ★★★★★
Robinhood
★★★★★
Stocks, Options, ETFs, Cryptocurrency
$0
$0
5%
Get a free stock
Trade stocks, options, ETFs and crypto without commissions and on a user-friendly platform. Plus, a 1% IRA match and no options contract fees.
Public.com
Finder Score: 4.2 / 5: ★★★★★
Public.com
★★★★★
Stocks, Bonds, Options, ETFs, Cryptocurrency, Alternatives, Treasury Bills, High-yield cash account
$0
$0
5.1%
Get up to $10,000 and transfer fees covered
Build a diversified portfolio of stocks, bonds, options, ETFs, crypto and alternative assets, with a high-yield cash account and options contract rebates.
Moomoo
Finder Score: 4.3 / 5: ★★★★★
Exclusive
Moomoo
★★★★★
Stocks, Options, ETFs
$0
$0
Up to 8.10%
Get up to 15 free stocks
No commission stock, ETF and options trades, with $0 equity options contract fees, low margin rates and advanced trading tools.
E*TRADE from Morgan Stanley
Finder Score: 4.2 / 5: ★★★★★
E*TRADE from Morgan Stanley
★★★★★
Stocks, Bonds, Options, Mutual funds, ETFs, CDs, Futures
$0
$0
0.01% to 0.15%
Get up to $1,000
terms apply
$0 commissions on US-listed stocks, ETFs, mutual funds and options, with powerful, easy-to-use tools and complimentary market research.
loading

Bottom line

TIPS ETFs offer exposure to bonds issued by the US government or other governments. But unlike standard bonds, TIPS ETFs have a principal that adjusts based on certain measures of inflation. Because of this perk, investors often use them to protect their portfolios against inflation.
If you’re not sure this is a worthwhile investment for you, compare the best ETFs to find the right one for your needs.

Paid non-client promotion. Finder does not invest money with providers on this page. If a brand is a referral partner, we're paid when you click or tap through to, open an account with or provide your contact information to the provider. Partnerships are not a recommendation for you to invest with any one company. Learn more about how we make money.

Finder is not an advisor or brokerage service. Information on this page is for educational purposes only and not a recommendation to invest with any one company, trade specific stocks or fund specific investments. All editorial opinions are our own.

Kliment Dukovski's headshot
Writer

Kliment Dukovski was a personal finance writer at Finder, specializing in investments and cryptocurrency. He's written more than 700 articles to help readers compare the best trading platforms, understand complex investment terms and find the best credit cards for their needs. His expert commentary has been featured in such digital publications as Fox Business, MSN Money and MediaFeed. He’s also well-versed in money transfers, home loans and more — breaking down these topics into simple concepts anyone can understand. In another life, Kliment ghostwrote guides and articles on foreign exchange, stock market trading and cryptocurrencies. See full bio

Kliment's expertise
Kliment has written 102 Finder guides across topics including:
  • Investing
  • Day trading
  • Stock market technical analysis
  • Personal and business credit cards

More guides on Finder

Ask a question

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and finder.com Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Go to site