State Street SPDR Portfolio TIPS ETF

SPIP

Market cap $998M

Inflation-protected funds don't always protect against inflation. As consumer-price inflation hits a three-year high due to the Iran war, the premise in their names is being tested.

With global macroeconomic pressures not abating any time soon, and inflation signals coming in higher than expected, many advisors and investors are seeking guidance on how to amplify inflation protection within their portfolio.

The SPDR® Portfolio TIPS ETF (SPIP) is sensitive to real rates and won't perform well if rates remain high while inflation falls, especially on longer horizons.

Investors looking to adjust their allocations may want to add Treasury Inflation-Protected Securities, or TIPS, to their fixed income portfolio. At least since the CPI notched a 9% year-over-year increase in the summer of 2022, inflation has been back on investors' minds.