iShares 0-5 Year TIPS Bond ETF: $STIP #STIP

The iShares 0-5 Year TIPS Bond ETF (STIP) is an exchange-traded fund that provides investors with exposure to the U.S. Treasury Inflation-Protected Securities (TIPS) market. TIPS are a type of bond issued by the U.S. government that offer a fixed rate of interest, but with an additional feature that protects against inflation. The interest payments on TIPS are adjusted for inflation, so the bond's real (inflation-adjusted) value remains constant over time.

The STIP ETF invests in a variety of TIPS with maturities ranging from 0 to 5 years. This short-term focus allows the fund to provide a high degree of liquidity and low interest rate risk. It also makes the fund well-suited for investors looking to hedge against inflation.

The fund is managed by BlackRock, one of the largest asset managers in the world. It is designed to track the performance of the Bloomberg Barclays U.S. Treasury Inflation-Protected Securities 0-5 Year Index. This index is a market-value-weighted index that measures the performance of U.S. TIPS with maturities between 0 and 5 years.

STIP is considered a low-cost investment option, with an expense ratio of 0.08%. It also has a relatively low minimum investment of $100. The ETF is traded on the NYSE Arca exchange and can be bought and sold like a stock during market hours.

STIP's performance has been relatively stable, with a moderate return of around 2% to 3%. As of September 2021, the ETF holds around $1.2 billion in assets and has a yield of around 0.5%.

Investors should note that while TIPS may provide a hedge against inflation, they may not always perform as well as other fixed-income investments during periods of deflation or low inflation. Additionally, the fund's short-term focus may limit its ability to provide a hedge against long-term inflation.

Overall, the iShares 0-5 Year TIPS Bond ETF (STIP) is a low-cost and liquid investment option for investors looking to gain exposure to the U.S. Treasury Inflation-Protected Securities market and hedge against inflation. However, it is important to consider the fund's investment objective and strategies, as well as an individual's own investment goals, before making any investment decisions.

[MartinD]

As of March 10 2023, this stock (STIP) has a 30 Day Yield of -2.03. How the F! does an “inflation protected” ETF that compensates for increased interest have a NEGATIVE return in one of the most high inflation years since the 1980’s??!!
What am I missing here?