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.
Will TIP outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable TIP’s performance objective and investment process is for both security selection and portfolio construction.
The People Pillar is our evaluation of the TIP management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
The Parent Pillar is our rating of TIP’s parent organization’s priorities and whether they’re in line with investors’ interests.