SPIP Stock Recent News

The SPDR® Portfolio TIPS ETF (SPIP) is sensitive to real rates and won't perform well if rates remain high while inflation falls, especially on longer horizons.

Investors looking to adjust their allocations may want to add Treasury Inflation-Protected Securities, or TIPS, to their fixed income portfolio. At least since the CPI notched a 9% year-over-year increase in the summer of 2022, inflation has been back on investors' minds.

SPIP is an ETF that focuses on providing investors exposure to U.S. Treasury Inflation-Protected Securities. Since the onset of the bond bear market in late 2021, SPIP has suffered a decline exceeding 20%, resulting in its current trading levels comparable to 2010. The future path of inflation is key in determining the ultimate performance of SPIP. Recent CPI data confirm a noticeable slowdown of inflation, from which SPIP stands to benefit.

The SPIP has a real yield of 1.6%, which is what investors should expect to achieve after inflation over the maturity of the bond fund, which is currently 7.8 years. Returns are likely to be significantly higher than this over the coming 12-24 months as real bond yields make their way back below zero, in line with international trends.

Investors face a myriad of challenges that threaten their portfolios. Ongoing headwinds like inflation, rising interest rates, geopolitical risks, rising energy prices, and ongoing supply chain hurdles have all weighed on investor confidence.