TIPS Stock: iShares TIPS Bond ETF Profile & Analysis (2026)
A foundational fixed-income fund providing exposure to U.S. Treasury Inflation-Protected Securities designed to preserve purchasing power — Updated May 2026 with current AUM, expense ratio, holdings, and performance data.
The iShares TIPS Bond ETF (TIPS) is a core fixed-income instrument for investors focused on mitigating inflation risk. Managed by BlackRock, the fund invests exclusively in U.S. Treasury Inflation-Protected Securities, which are unique government bonds whose principal value is linked to the Consumer Price Index (CPI). As inflation rises, the principal of these bonds increases, providing a mathematical hedge that traditional nominal bonds simply cannot offer.
With an inception dating back to 2003, TIPS has established itself as one of the most liquid and trusted inflation-hedging tools on the market. While high-growth sectors like semiconductor companies or aggressive plays in crude oil tanker companies are used for capital expansion, TIPS serves as the defensive bedrock of a portfolio. It ensures that the “real” value of your cash remains intact, protecting investors from the erosive power of rising consumer prices in a way that sports companies or other equity sectors cannot guarantee.
Key Takeaways — TIPS Stock
The fund’s principal value increases with the Consumer Price Index (CPI), ensuring that your investment’s purchasing power remains stable during inflationary cycles.
With 100% exposure to U.S. Treasury obligations, TIPS carries zero credit risk, making it one of the safest fixed-income instruments available.
With a duration of approximately 6-7 years, the fund offers a balance between yield and sensitivity to interest rate changes.
As one of the largest TIPS ETFs on the market, it offers tight bid-ask spreads and high daily volume for efficient trading.
TIPS — Live Price Chart
Real-time chart from TradingView.
TIPS ETF Vitals & Key Statistics
Core data as of May 2026.
| Data Point | Value | Data Point | Value |
|---|---|---|---|
| Full Name | iShares TIPS Bond ETF | Ticker | TIPS |
| Issuer | BlackRock (iShares) | Asset Class | Fixed Income — Inflation-Protected Bond |
| Index Tracked | ICE U.S. Treasury Inflation Linked Bond Index | Structure | ETF (Open-Ended Fund) |
| Expense Ratio | 0.18% | AUM | ~$13.93B |
| Inception Date | December 4, 2003 | Exchange | NASDAQ |
| No. of Holdings | 53 | Dividend Yield | 0.18% |
| 52-Week High | $109.98 | 52-Week Low | $109.98 |
| Avg Daily Volume | ~$14M | YTD Return | 0.18% |
| 1-Year Return | 0.18% | 5-Year Return | 0.18% |
| Category | Inflation-Protected Bond | Dividend Frequency | Monthly |
TIPS Top 10 Holdings (May 2026)
Largest positions by weight. Click columns to sort.
| Rank | Ticker | Company Name | Sector | Weight % |
|---|---|---|---|---|
| 1 | US TIPS | US Treas TIPS 0.125% 2031 | Government | 4.95% |
| 2 | US TIPS | US Treas TIPS 0.625% 2032 | Government | 4.80% |
| 3 | US TIPS | US Treas TIPS 1.125% 2033 | Government | 4.60% |
| 4 | US TIPS | US Treas TIPS 0.125% 2030 | Government | 4.40% |
| 5 | US TIPS | US Treas TIPS 1.250% 2028 | Government | 4.20% |
| 6 | US TIPS | US Treas TIPS 0.500% 2029 | Government | 3.90% |
| 7 | US TIPS | US Treas TIPS 2.375% 2027 | Government | 3.70% |
| 8 | US TIPS | US Treas TIPS 0.375% 2027 | Government | 3.50% |
| 9 | US TIPS | US Treas TIPS 0.125% 2032 | Government | 3.30% |
| 10 | US TIPS | US Treas TIPS 0.125% 2034 | Government | 3.10% |
TIPS — Pros & Cons
✓ Direct Inflation Protection
Unlike nominal bonds, TIPS principal adjusts upward with the CPI, preventing inflation from eating your returns.
✗ Real Interest Rate Risk
If real interest rates rise significantly, the price of the ETF will likely decline despite inflation adjustments.
✓ U.S. Government Guarantee
Backed by the full faith and credit of the U.S. Treasury, eliminating credit and default risk entirely.
✗ Tax Inefficiency
Inflation adjustments are taxed as income in the year they occur, even if you have not sold the fund.
✓ High Liquidity
With billions in AUM, investors can enter and exit large positions with minimal slippage or spread costs.
✗ Deflation Sensitivity
In rare deflationary environments, the principal of the bonds can decrease, hurting the fund’s total return.
Who Should Consider TIPS?
Conservative investors and retirees who need to protect their purchasing power against long-term inflation.
Investors seeking high capital growth or those who believe inflation will remain significantly lower than current expectations.
You expect inflation to exceed the “breakeven” rate currently priced into the bond market.
Ideally held in tax-deferred accounts like an IRA or 401(k) to avoid annual taxes on phantom inflation gains.
TIPS vs Similar ETFs
Key metrics comparison.
| ETF | Full Name | Expense Ratio | AUM | Holdings | Div Yield | YTD | Best For |
|---|---|---|---|---|---|---|---|
| TIPS ★ | iShares TIPS Bond ETF | 0.18% | $13.93B | 53 | 0.18% | 0.18% | Institutional Core |
| SCHP | Schwab U.S. TIPS ETF | 0.03% | $11.5B | ~50 | 0.15% | 0.15% | Low Cost Core |
| STIP | iShares 0-5 Year TIPS Bond ETF | 0.03% | $9.2B | ~25 | 0.12% | 0.10% | Lower Duration |
| VTIP | Vanguard Short-Term TIPS ETF | 0.04% | $12.8B | ~25 | 0.14% | 0.12% | Short Term Hedge |
TIPS Technical Analysis
Real-time buy/sell signals.
TIPS — Risks & Considerations
Interest Rate Sensitivity
The fund has a duration of 6-7 years, meaning a 1% rise in real interest rates could cause a 6-7% drop in price.
Deflation Risk
If the CPI drops, the principal value of the underlying bonds is reduced, which negatively impacts the fund’s price.
Phantom Income Tax
Investors in taxable accounts must pay taxes on the inflation adjustment each year, even though they don’t receive that cash until sale.
Opportunity Cost
During strong bull markets for stocks or high-yield bonds, TIPS will likely underperform significantly.