Treasury Inflation Protected Securities (TIPS) Definition
Learn the definition of treasury inflation protected securities (TIPS) and other ETF terminology from the etf.com glossary.
Learn more about Treasury Inflation Protected Securities (TIPS)
Treasury Inflation Protected Securities (TIPS) act as a shield against inflation, offering investors a unique opportunity to preserve purchasing power. TIPS adjust their principal value in response to changes in the Consumer Price Index (CPI), ensuring that investors are protected from the erosive effects of inflation. TIPS ETFs provide a convenient avenue for investors to access this inflation-protected asset class, allowing for portfolio diversification and the incorporation of a risk-mitigating element. In a financial landscape where safeguarding against inflation is paramount, TIPS ETFs emerge as a strategic tool for prudent wealth preservation.
