Inflation-protected ETF TIP lost $36,720 in 2022 despite high inflation due to rising interest rates.

In 2022, the iShares TIPS Bond ETF (TIP), designed to protect against inflation, lost $36,720 on a $300,000 investment due to rising interest rates that lowered bond prices despite inflation adjustments. TIP’s effective duration of over 6 years made it sensitive to interest rate hikes, causing market value declines that outweighed inflation gains. While TIP maintains purchasing power over the long term and carries low credit risk, it is not suitable as a short-term inflation shield, especially for retirees needing liquidity. Investors should consider the fund’s duration, tax implications, and past performance before investing.

As of Oct 23, 2026 03:22 WIB, TIP trades at USD 106.31 on Pluang, recovering somewhat from its 52-week low of USD 103.98 but still below the 52-week high of USD 112.20. The ETF's 1-day gain of 0.72% contrasts with the significant losses noted in 2022, highlighting some recent stability. Typical investors hold TIP for about 68 days on Pluang, reflecting a relatively short-term engagement despite the fund's long-duration sensitivity to interest rates.