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Some TIPS ETFs Disappoint. This One Doesn’t.

BY | ETF Database
8:08 am ET 08/31/26 | 11 VIEWS
In theory, the last several years should’ve been an ideal time to own Treasury Inflation Protection Securities (TIPS) and the related ETFs. However, the largest ETF in the category has gained just 4% since June 2025. While that is by no means a terrible performance, it pales in comparison to the nearly 30% return generated by the WisdomTree Inflation Plus Fund (WTIP ) over the same cycle — a relevant measuring period because WTIP came to market in June 2025.There’s a lot to like about the actively managed WTIP. It offers a unique combination of TIPS plus commodities exposure and isn’t nearly as rate-sensitive as old-guard TIPS ETFs. While standard TIPS can protect against inflation, many of these bonds are intermediate- or long-term fare. This implies higher levels of sensitivity to rising Treasury yields. “While TIPS are an excellent hedge against inflation, they’re still subject to the same type of risk that can foil any other type of bond. TIPS and bond funds with longer durations are at the greatest risk from rising interest rates,” noted Amy Arnott of Morningstar.Winning With WTIPFor most investors, individual bonds — be they TIPS or otherwise — and the related ETFs are long-term vehicles. The longer a bond or fixed income ETF is held, the more potent its income proposition. However, WTIP’s recent outperformance shows it can capture short-term momentum as well. As has been widely noted, 30-year Treasury yields recently hit their highest levels in 19 years. But over the past month, WTIP jumped more than 5% while the most prominent TIPS ETF gained just 0.78%. The difference-maker is the WisdomTree ETF’s commodities exposure. As just one example, gold raced higher over the past month — so much so that some experts believe a new bull market for the yellow metal is here. That’s meaningless to traditional TIPS ETFs, but WTIP is levered to that trend. WTIP offers other perks, including an attractive 30-day SEC yield of 7.28%. Plus, as an ETF, WTIP has no investment minimums — unlike purchasing individual TIPS. “The minimum purchase amount for TIPS is $100 if you purchase it directly (via TreasuryDirect). Brokerage platforms such as Fidelity, Schwab, and Vanguard generally require a minimum purchase amount of $1,000,” added Arnott. For more news, information, and analysis, visit the Modern Alpha Content Hub.DisclosuresThis article was prepared as part of WisdomTree’s general paid sponsorship of VettaFi | ETF Trends. This specific content within and any opinions expressed therein belong solely to VettaFi and do not reflect the opinion or analysis of WisdomTree, its employees, or its affiliates. Content published on VettaFi | ETF Trends is provided for educational purposes only and should not be considered investment or tax advice. For investment or tax advice, please consult a financial professional. WisdomTree is an independent company, unaffiliated with VettaFi | ETF Trends. WisdomTree has not been involved with the preparation of the content supplied by VettaFi | ETF Trends. It does not guarantee, or assume any responsibility for its content.

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