TIPS ETF TIP lost 12% in 2022 despite 9% inflation due to high duration risk.

In 2022, the iShares TIPS Bond ETF (TIP) lost 12.13% even as inflation surged above 9%, because its long duration made it sensitive to rising interest rates. Unlike individual TIPS bonds held to maturity, TIP continuously trades bonds, exposing investors to price drops when yields rise. Newer ETFs like RBIL focus on ultra-short duration TIPS, reducing interest rate risk while still protecting against inflation. Investors seeking inflation protection with less rate sensitivity may prefer these shorter-duration options going forward.

TIP (iShares TIPS Bond ETF) trades at USD 103.80 on Pluang, down 0.59% as of Oct 12, 2026, 15:41 WIB. The ETF has a market cap of $14.25 billion and a typical hold time of 63 days on the platform. This data highlights ongoing investor activity despite the challenges noted in the article regarding duration risk and inflation sensitivity.