ETFs & Funds
Home›ETFs & Funds›ETFs›WisdomTree’s Inflation Plus ETF outperforms as TIPS lag
WisdomTree’s Inflation Plus ETF outperforms as TIPS lag
WTIP has gained more than 5% over the past month while the category’s most prominent TIPS ETF rose 0.78%, helped by commodities exposure.
Treasury Inflation Protection Securities have been an area of interest for investors, but ETF Trends says results have been mixed across the category in recent years. The outlet notes the largest TIPS ETF has gained about 4% since June 2025, compared with nearly a 30% return over the same cycle for the WisdomTree Inflation Plus Fund (WTIP), which launched in June 2025.
ETF Trends attributes WTIP’s relative strength to its structure, including an actively managed approach that pairs TIPS exposure with commodities. The article says this differs from traditional TIPS ETFs, which often hold intermediate- or long-term bonds and can be more sensitive to rising Treasury yields.
Morningstar’s Amy Arnott is cited in the piece as saying TIPS still face bond-market risks, with longer duration funds generally at greater risk when interest rates rise. ETF Trends adds that 30-year Treasury yields recently reached their highest levels in 19 years.
The article also points to WTIP’s short-term performance and yield, saying the fund rose more than 5% over the past month while the most prominent TIPS ETF gained 0.78%. It links that gap to commodities exposure, including gold’s recent surge, and cites a 30-day SEC yield of 7.28% for WTIP.
ETF Trends further says buying an ETF avoids minimums that can apply to individual TIPS purchases, noting a $100 minimum via TreasuryDirect and higher typical minimums on some brokerage platforms. The piece also includes a sponsorship disclosure tied to WisdomTree’s paid promotion of the content through VettaFi | ETF Trends.
Latest closeGold $4,504.10 ▼2.3%