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Inflation-protected ETFs: what held up when prices jumped

TIPS funds, T-bill funds, gold, commodities and real-asset stocks, compared on what they returned during the 2021–22 inflation surge and what they have earned after inflation over ten years.

39funds compared

5groups, by job

Oct 27, 2026data as of

Inflation is the slow risk in retirement. Prices rising 3% a year cut the buying power of a fixed income by about a quarter in ten years, and in 2021 and 2022 they rose much faster than that. Social Security adjusts for inflation; most savings don’t, unless you choose investments that do.

Not every “inflation hedge” worked when it mattered. This page compares the main candidates on what they returned during the 2021–22 surge, what they have earned after inflation over ten years, and how they did in 2022, when rising interest rates hit many of them at the same time.

TIPS funds

Treasury Inflation-Protected Securities: the bonds’ principal rises with consumer prices, and the interest is paid on that rising amount. The most direct protection for spending power, though their prices still move with interest rates.

11 funds. During the 2021–22 surge, when consumer prices rose 14%, none that existed then kept up with inflation; returns ranged from -26.9% (LTPZ) to +2.5% (STIP).
The shorter a TIPS fund’s maturity, the better it did: rising interest rates cut long-term TIPS prices far more than short-term ones, and over those two years even the best TIPS fund fell well short of inflation.
Lowest cost: VTIP at 0.03%.

Fund	Yield	Cost	Net assets	Avg. maturity	2021–22	10 yr, after inflation	2022 drop
AGG Regular bonds (AGG), for comparison	4.13%	0.03%	$138.32B	12.4 yrs	-14.5%	—	-14.4%
VTIP Vanguard Short-Term Inflation-Protected Secur…	4.79%	0.03%	$71.01B^†	2.4 yrs	+2.2%	—	-3.5%
SCHP Schwab U.S. TIPS ETF	4.95%	0.03%	$16.52B	7.2 yrs	-6.9%	—	-12.6%
STIP iShares 0-5 Year TIPS Bond ETF	4.7%	0.03%	$15.91B	2.4 yrs	+2.5%	—	-3.4%
TIP iShares TIPS Bond ETF	4.42%	0.18%	$14.60B	6.9 yrs	-7.3%	—	-12.7%
TDTT FlexShares iBoxx 3-Year Target Duration TIPS …	4.89%	0.18%	$2.55B	2.9 yrs	+0.7%	—	-5.2%
TIPX SPDR Bloomberg 1-10 Year TIPS ETF	5.14%	0.15%	$1.91B	4.6 yrs	-2.5%	—	-8.2%
DFIP Dimensional Inflation-Protected Securities ETF	5.3%	0.11%	$1.12B	6.9 yrs	—	—	-13.2%
TDTF FlexShares iBoxx 5-Year Target Duration TIPS …	5.11%	0.18%	$1.04B	5.2 yrs	-4.7%	—	-10.3%
SPIP SPDR Portfolio TIPS ETF	5.42%	0.12%	$1.01B	7.4 yrs	-7.7%	—	-13.3%
LTPZ PIMCO 15+ Year US TIPS Index Exchange-Traded …	6.23%	0.2%	$707.9M	21.6 yrs	-26.9%	—	-32.8%
STPZ PIMCO 1-5 Year US TIPS Index Exchange-Traded …	4.65%	0.2%	$526.5M	2.9 yrs	+0.9%	—	-4.9%

T-bill and floating-rate funds

Very short-term Treasuries and notes whose interest resets with short-term rates. When the Federal Reserve raises rates to fight inflation, their income rises within months.

7 funds. During the 2021–22 surge, when consumer prices rose 14%, none that existed then kept up with inflation; returns ranged from +0.9% (SHV) to +2.1% (TFLO).
Lowest cost: SGOV at 0.09%.

Fund	Yield	Cost	Net assets	Avg. maturity	2021–22	10 yr, after inflation	2022 drop
AGG Regular bonds (AGG), for comparison	4.13%	0.03%	$138.32B	12.4 yrs	-14.5%	—	-14.4%
SGOV iShares 0-3 Month Treasury Bond ETF	3.65%	0.09%	$105.98B	0.1 yrs	—	—	+0.8%
BIL SPDR Bloomberg 1-3 Month T-Bill ETF	3.64%	0.14%	$47.08B	0.2 yrs	+1.3%	—	+0.6%
SHV iShares Short Treasury Bond ETF	3.63%	0.15%	$20.97B	0.3 yrs	+0.9%	—	+0.2%
USFR WisdomTree Floating Rate Treasury Fund	4.07%	0.15%	$18.76B	1.5 yrs	+2.0%	—	+1.1%
FLOT iShares Floating Rate Bond ETF	4.25%	0.15%	$10.32B	2.0 yrs	+1.8%	—	-0.3%
TFLO iShares Treasury Floating Rate Bond ETF	3.69%	0.15%	$6.70B	1.1 yrs	+2.1%	—	+1.1%
BILS SPDR Bloomberg 3-12 Month T-Bill ETF	3.67%	0.14%	$3.87B	0.4 yrs	—	—	+0.1%

Gold and precious metals

Trusts that hold physical metal. Gold has kept its value over very long periods, but year to year it moves for many reasons besides inflation.

6 funds. During the 2021–22 surge, when consumer prices rose 14%, none that existed then kept up with inflation; returns ranged from -10.2% (SLV) to -4.4% (SGOL).
Lowest cost: GLDM at 0.1%.

Fund	Yield	Cost	Net assets	2021–22	10 yr, after inflation	2022 drop	5 yr
AGG Regular bonds (AGG), for comparison	4.13%	0.03%	$138.32B	-14.5%	—	-14.4%	-0.3%
GLD SPDR Gold Shares	—	0.4%	$130.10B	-4.9%	—	-7.3%	+17.2%
IAU iShares Gold Trust	0%	0.25%	$60.11B	-4.5%	—	-7.2%	+17.4%
SLV iShares Silver Trust	0%	0.5%	$28.21B	-10.2%	—	-16.9%	+17.1%
GLDM SPDR Gold MiniShares Trust	—	0.1%	$27.30B	-4.5%	—	-7.1%	+17.6%
PHYS Sprott Physical Gold Trust	—	—	$10.70B	-6.6%	—	-8.1%	+16.7%
SGOL abrdn Physical Gold Shares ETF	—	0.17%	$6.74B	-4.4%	—	-7.2%	+17.5%

Broad commodity funds

Futures on energy, metals and farm goods, the prices that drive inflation in the first place. They can jump when inflation does, and lag for years when it doesn’t.

5 funds. During the 2021–22 surge, when consumer prices rose 14%, all 5 that existed then kept up with inflation; returns ranged from +45.0% (BCI) to +72.7% (GSG).
Lowest cost: BCI at 0.26%.

Fund	Yield	Cost	Net assets	2021–22	10 yr, after inflation	2022 drop	5 yr
AGG Regular bonds (AGG), for comparison	4.13%	0.03%	$138.32B	-14.5%	—	-14.4%	-0.3%
PDBC Invesco Optimum Yield Diversified Commodity S…	2.54%	0.59%	$6.40B	+69.2%	—	+21.5%	+12.3%
FTGC First Trust Global Tactical Commodity Strateg…	14.36%	0.98%	$2.70B	+50.2%	—	+14.5%	+13.1%
BCI abrdn Bloomberg All Commodity Strategy K-1 Fr…	12.39%	0.26%	$2.28B	+45.0%	—	+15.3%	+9.9%
DBC Invesco DB Commodity Index Tracking Fund	2.2%	0.85%	$1.42B	+68.7%	—	+21.4%	+12.6%
GSG iShares S&P GSCI Commodity-Indexed Trust	0%	0.75%	$1.10B	+72.7%	—	+27.3%	+15.7%

Real-asset stock funds

Companies that own real things: property, pipelines, energy reserves and natural resources. They can raise prices and rents with inflation, but they are still stocks.

10 funds. During the 2021–22 surge, when consumer prices rose 14%, 3 of the 10 that existed then kept up with inflation; returns ranged from +0.6% (REET) to +141.1% (XLE).
Lowest cost: SCHH at 0.07%.

Fund	Yield	Cost	Net assets	2021–22	10 yr, after inflation	2022 drop	5 yr
AGG Regular bonds (AGG), for comparison	4.13%	0.03%	$138.32B	-14.5%	—	-14.4%	-0.3%
VNQ Vanguard Real Estate ETF	3.69%	0.13%	$73.11B^†	+3.7%	—	-31.8%	+0.6%
XLE Energy Select Sector SPDR Fund	2.23%	0.08%	$35.72B	+141.1%	—	+42.2%	+5.8%
PAVE Global X US Infrastructure Development ETF	0.81%	0.47%	$13.50B	+26.6%	—	-16.5%	+15.2%
GRID First Trust Nasdaq Clean Edge Smart GRID Infr…	0.93%	0.56%	$12.08B	+9.9%	—	-27.5%	+12.1%
SCHH Schwab US REIT ETF	2.95%	0.07%	$11.20B	+5.8%	—	-30.9%	+1.5%
IGF iShares Global Infrastructure ETF	2.97%	0.37%	$10.78B	+10.2%	—	-14.0%	+9.6%
XLRE Real Estate Select Sector SPDR Fund	3.39%	0.08%	$8.10B	+7.7%	—	-32.3%	+1.1%
GUNR FlexShares Morningstar Global Upstream Natura…	2.3%	0.46%	$7.24B	+44.9%	—	+1.4%	+10.3%
REET iShares Global REIT ETF	3.6%	0.14%	$5.13B	+0.6%	—	-31.0%	+1.0%
IYR iShares U.S. Real Estate ETF	2.44%	0.37%	$4.67B	+3.3%	—	-31.3%	+0.4%

What actually protects against inflation

TIPS protect spending power, eventually

A TIPS bond’s principal rises with consumer prices, so held to maturity it keeps up with inflation. A TIPS fund’s price still falls when interest rates rise, which is why long-term TIPS funds lost money in 2022 even as inflation peaked. Short-term TIPS track inflation more closely.

T-bills follow rates, not prices

T-bill income rises as the Federal Reserve raises rates to fight inflation, with a lag. That protected far better than long bonds in 2022, but nothing promises T-bills will beat inflation in any given year.

Commodities and gold are volatile

Broad commodity funds soared when inflation took off, but they have also gone through long stretches of losses. Gold has held its value over decades without moving reliably with inflation from year to year.

Stocks are the long-run hedge

Over decades, company earnings and dividends have outpaced inflation, which is why most retirement plans keep a large share in stocks. In the short run, stocks can fall when inflation surprises, as they did in 2022.

How much inflation can your plan handle?

ReadyAimRetire projects your spending, Social Security and investments year by year, so you can see what a few years of high inflation would do to your retirement.

Test my plan →

Questions investors ask

What is the best inflation hedge for retirees?

There isn’t a single one. Social Security already rises with inflation. For savings, TIPS held to maturity track inflation most directly (though rising rates held TIPS funds back in 2021–22), T-bills keep pace with rising rates, and stocks have been the best long-run protection. Commodities and gold have helped in some inflationary periods and not others.

Why did TIPS funds lose money in 2022?

Interest rates rose sharply, and that pushed down the price of existing bonds, TIPS included. The inflation adjustment softened the loss but couldn’t offset it for funds holding longer-dated TIPS. Short-term TIPS funds, which are less sensitive to rates, came close to breaking even.

Should I buy TIPS funds or I bonds?

I bonds are bought directly from the Treasury, with yearly purchase limits and a minimum holding period, and their value never falls. TIPS funds can be bought in any amount and sold any day, but their prices move with interest rates. Many people use both.

Do stocks protect against inflation?

Over long periods, yes: company sales and profits tend to rise with prices. Over a year or two they often don’t, because high inflation brings higher interest rates, which weigh on stock prices. A plan that relies on stocks for inflation protection needs time on its side.

How we built this list

Which funds: US-listed TIPS funds with at least $300 million in net assets, T-bill and floating-rate Treasury funds above $3 billion, and commodity and real-asset funds above $1 billion. Leveraged, inverse, international TIPS and single-commodity futures funds are left out. The largest funds in each group are shown.
2021–22: total return from December 31, 2020 to December 30, 2022, compared with the rise in consumer prices (CPI-U) from December 2020 to December 2022: 14%.
10 yr, after inflation: annualized total return over the ten years to Oct 27, 2026, minus annualized inflation over the same years.
Maturity: average stated years to maturity of the bonds, weighted by size, from each fund’s latest N-PORT report. T-bill funds hold bills the report counts as cash, so they show no maturity.
Yield and 2022 drop: yield is the last 12 months of distributions divided by the price; TIPS payouts swing with inflation. 2022 drop runs from January 3 to October 12, 2022.

Figures computed Nov 3, 2026. For education only, not a recommendation to buy or sell any fund. Past results do not predict future results.

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