TIP - Protect against inflation with these TIPS ETFs

As inflation concerns continue to swirl around the market, investors may look towards U.S. Treasury Inflation-Protected Securities, or "TIPS,” ETFs for protection. The way TIPS bonds work is that they increase payments when inflation rises, and decrease payments when inflation falls. Upon maturity, the principal repayment of the bond is either the original principal or an inflation-adjusted principal, whichever is greater. TIPS exchange traded funds also offer differing maturity dates per fund. Wide-ranging maturity TIPS: iShares TIPS Bond ETF (NYSEARCA:TIP), Schwab U.S. TIPS ETF (NYSEARCA:SCHP), and the PIMCO Broad US TIPS Index ETF (NYSEARCA:TIPZ). Medium-term maturity TIPS: SPDR Bloomberg Barclays 1-10 Year TIPS ETF (NYSEARCA:TIPX). Short-term maturity TIPS: Vanguard Short-Term Inflation-Protected Securities ETF (NASDAQ:VTIP) and the iShares 0-5 Year TIPS Bond ETF (NYSEARCA:STIP). YTD ETF performance: TIP +0.74%, SCHP +1.10%, TIPZ +0.96%, TIPX +1.03%, VTIP +1.98%, STIP +1.46%. Inflation rose to 6.8% Y/Y in Nov. a jump from 6.2% in Oct., its largest jump in 39 years as seen in the below chart.

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Protect against inflation with these TIPS ETFs