What is a TIPS ETF?

A TIPS ETF invests in Treasury Inflation-Protected Securities (TIPS), which are U.S. government bonds designed to adjust principal based on inflation measures. This can help protect purchasing power.

TIPS still have interest-rate risk, particularly through changes in real yields. A TIPS ETF can lose value when real yields rise, even if inflation is high.

If you're using a TIPS ETF, consider duration, your time horizon, and whether you're trying to hedge unexpected inflation or simply diversify. They're useful tools, but they're not a guaranteed "inflation win" in every environment.