WisdomTree Inflation Plus Fund

WTIP

Market cap $21.4M

The war in Iran reignited inflationary pressures and threw a wrench in the Federal Reserve's plans to lower interest rates this year. Sure, anything is possible, but Fed funds futures imply long odds of a July rate cute.

With the U.S. economy grappling with persistent energy shocks and rising electricity costs, inflation expectations for the next five years have climbed to their highest levels in four years. For financial advisors, the challenge is shielding client portfolios from eroding purchasing power.

With inflation persistent and rising due to soaring energy prices, it's not surprising that advisors and fixed income investors are revisiting Treasury Inflation-Protected Securities (TIPS). In fact, data indicate that inflation-linked bonds have been among the most popular fixed income destinations, dating back to 2022.

Yes, much of the blame lies with energy prices, which surged due to the war in Iran. Still, the March reading of the Consumer Price Index (CPI) serves as a reminder of the work to be done to damp inflation.

Some progress has been made in terms of fighting inflation, but likely not enough for most consumers. That's enough for many advisors and fixed income investors to revisit a familiar stomping ground: Treasury Inflation-Protected Securities (TIPS).