TIP Stock: iShares TIPS Bond ETF Profile & Analysis (2026)
A premier exchange-traded fund designed to protect investor purchasing power by tracking U.S. Treasury Inflation-Protected Securities — Updated May 2026 with current AUM, expense ratio, holdings, and performance data.
The TIP stock represents the iShares TIPS Bond ETF, one of the oldest and most liquid vehicles for accessing the U.S. Treasury Inflation-Protected Securities (TIPS) market. Unlike traditional bond funds such as the AGG Stock Profile or the BND Stock Profile, which hold nominal bonds, TIP holds bonds whose principal value increases with inflation as measured by the Consumer Price Index (CPI). This makes the fund a strategic cornerstone for conservative portfolios looking to hedge against the eroding effects of rising prices on fixed-income returns.
While investors in defensive equity sectors like the Complete List Of Utilities Listed On U S Exchanges seek stability through dividends, TIP offers a different kind of safety: the creditworthiness of the U.S. government combined with an explicit inflation adjustment. However, because it holds longer-dated securities, TIP is more sensitive to interest rate changes than short-term inflation funds. Investors often compare TIP’s performance and duration to nominal long-term treasuries found in the TLT Stock Profile to determine the market’s current “break-even” inflation expectations.
Key Takeaways — TIP Stock
The principal value of the underlying bonds in TIP adjusts upward when inflation rises, protecting the investor’s real purchasing power.
The fund only holds debt backed by the full faith and credit of the U.S. government, offering the highest level of credit safety available.
Investors receive monthly interest payments that can fluctuate based on the inflation adjustments applied to the underlying bond principal.
Despite its inflation protection, TIP is still a bond fund; its price will generally fall when real interest rates rise.
TIP — Live Price Chart
Real-time chart from TradingView.
TIP ETF Vitals & Key Statistics
Core data as of May 2026.
| Data Point | Value | Data Point | Value |
|---|---|---|---|
| Full Name | iShares TIPS Bond ETF | Ticker | TIP |
| Issuer | BlackRock (iShares) | Asset Class | Fixed Income / Inflation-Protected |
| Index Tracked | ICE US Treasury Inflation Linked Bond Index | Structure | ETF |
| Expense Ratio | 0.18% | AUM | ~$14.95B |
| Inception Date | December 4, 2003 | Exchange | AMEX |
| No. of Holdings | 50 | Dividend Yield | 3.77% |
| 52-Week High | $112.26 | 52-Week Low | $108.08 |
| Avg Daily Volume | 2.39 million | YTD Return | 1.65% |
| 1-Year Return | 2.82% | 5-Year Return | 1.31% |
| Category | Inflation-Protected Bond | Dividend Frequency | Monthly |
TIP Top 10 Holdings (May 2026)
Largest positions by weight. Click columns to sort.
| Rank | Ticker | Company Name | Sector | Weight % |
|---|---|---|---|---|
| 1 | TREASURY | Treasury CPI Note (04/15/28) | Government | 4.10% |
| 2 | TREASURY | U.S. Treasury Note (04/15/30) | Government | 4.06% |
| 3 | TREASURY | U.S. Treasury Note (01/15/31) | Government | 4.00% |
| 4 | TREASURY | U.S. Treasury Note (07/15/29) | Government | 4.00% |
| 5 | TREASURY | U.S. Treasury Note (10/15/27) | Government | 3.59% |
| 6 | TREASURY | U.S. Treasury Note (04/15/32) | Government | 3.38% |
| 7 | TREASURY | U.S. Treasury Note (02/15/29) | Government | 3.35% |
| 8 | TREASURY | U.S. Treasury Note (07/15/31) | Government | 3.34% |
| 9 | TREASURY | U.S. Treasury Note (11/15/30) | Government | 3.33% |
| 10 | TREASURY | U.S. Treasury Note (01/15/28) | Government | 3.31% |
TIP — Pros & Cons
✓ Direct Inflation Hedge
One of the few assets where the principal explicitly increases in line with the CPI, protecting long-term wealth.
✗ Duration Risk
Holding intermediate and long-term bonds makes the fund price vulnerable to rising real interest rates.
✓ Maximum Credit Safety
As a portfolio of U.S. Treasuries, there is virtually zero risk of default on the underlying holdings.
✗ Higher Expense Ratio
At 0.18%, it is significantly more expensive than competitors like SCHP or VTIP which charge as little as 0.03%.
✓ High Liquidity
Massive daily trading volume ensures tight bid-ask spreads for both retail and institutional investors.
✗ Phantom Income Tax
In taxable accounts, you must pay taxes on the principal increase each year, even though you haven’t sold the shares.
Who Should Consider TIP?
Retirees and conservative investors who are primarily concerned with maintaining their standard of living against rising consumer prices.
Aggressive growth investors or those who believe inflation will remain persistently low for the foreseeable future.
The “break-even” inflation rate (the difference between nominal and TIPS yields) is lower than what you expect actual inflation to be.
Due to the tax treatment of inflation adjustments, TIP is most efficiently held in tax-deferred accounts like an IRA or 401(k).
TIP vs Similar ETFs
Key metrics comparison.
| ETF | Full Name | Expense Ratio | AUM | Holdings | Div Yield | YTD | Best For |
|---|---|---|---|---|---|---|---|
| TIP ★ | iShares TIPS Bond ETF | 0.18% | $14.95B | 50 | 3.77% | 1.65% | Liquidity and Size |
| SCHP | Schwab U.S. TIPS ETF | 0.03% | $11.2B | 48 | 3.81% | 1.68% | Low Cost (Broad) |
| VTIP | Vanguard Short-Term TIPS | 0.03% | $13.5B | 22 | 3.45% | 1.42% | Low Interest Rate Risk |
| STIP | iShares 0-5 Year TIPS | 0.03% | $9.8B | 20 | 3.50% | 1.45% | Short Duration Hedge |
TIP Technical Analysis
Real-time buy/sell signals.
TIP — Risks & Considerations
Interest Rate Risk
Even if inflation is high, if the Fed raises rates aggressively, the market price of TIP shares can drop significantly due to its duration.
Deflation Risk
In the rare event of prolonged deflation, the principal value of the bonds would decrease, potentially leading to negative returns.
CPI Lag and Mismatch
TIPS are tied to the headline CPI-U index; if your personal cost of living rises faster than the official index, you may still lose purchasing power.
Taxation Issues
Inflation adjustments are taxed as ordinary income annually, which can create a tax liability without providing the cash to pay it.