TIPS In Trouble: Why Inflation-Protected Bond ETFs Are Losing Their Spark
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 19 2025
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Source: Benzinga
TIPS ETFs Performance: Exchange-traded funds (ETFs) investing in Treasury Inflation-Protected Securities (TIPS) are experiencing declines due to moderated inflation expectations and a recent downgrade of the U.S. credit rating by Moody's, which has led to rising real yields.
Outlook for TIPS: The near-term outlook for TIPS remains challenging as cooling inflation expectations and increasing real yields diminish their attractiveness, potentially causing them to lag behind nominal Treasuries and equity-linked inflation hedges unless inflation reaccelerates or market turmoil prompts a flight to safety.
Analyst Views on VTIP
Wall Street analysts forecast VTIP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VTIP is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 49.460
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Current: 49.460
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
