TIPX: Here's A Tip, Don't Buy This ETF

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Modern Income Investor


  • TIPX and other Treasury Inflation-Protected Security ETFs would seem to be in their sweet spot right now.
  • But there's more to owning a fund like this than just getting a bond yield plus a big inflation "kicker".
  • TIPX owns a class of securities that are more complex than meets the eye.
  • And, while it may be a "lose-less" type of investment in the current climate, why settle for that?
  • We rate TIPX a Sell. Good construction, but potential to sucker in "yield chasers".

Manager is showing Treasury Inflation Protected Securities TIPs.


By Rob Isbitts


SPDR® Bloomberg 1-10 Year TIPS ETF (NYSEARCA:TIPX) aims to provide access to the Treasury Inflation Protected Securities market. While the idea of investing in a TIPS fund seems like an easy decision in an inflationary

Data by YCharts

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The concept of Modern Income Portfolios was created by veteran investment strategist Rob Isbitts, a former investment advisor who sold his practice in 2020 to focus on converting his decades of portfolio construction and research into something that could be delivered in a subscription-based format. The result: Modern Income Investor! Modern Income Investor is on a mission to solve the biggest investment challenge of this era: spinning off regular distributions from portfolio profits, while keeping the principal amount intact. This is what securities like corporate bonds and dividend stocks used to do well, but do not anymore. We pursue this by offering subscription-based investment research, model portfolios and timely insights, communicated in a concise, easy-to-use format.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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