At a glance
TIP charges 0.18% a year, above the 0.11% average of the 7 funds most like it (the 6th cheapest of 8). It has $14.60B in assets, the 5th largest of that group; it paid 4.42% of its price in distributions over the past 12 months, quarterly. Over the past year it returned −0.3% with distributions reinvested, 3rd of those 8 funds; over three years it returned +4.1% a year. At its worst it fell 11.2% in the 2020 crash (S&P 500: 33.7%) and 14.3% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 1 month and 41 months after the lows. Its ten largest positions make up 35.7% of the fund, out of 48 in all.
The short version
The iShares TIPS Bond ETF (TIP) tracks the ICE U.S. Treasury Inflation Linked Bond Index. That index holds Treasury Inflation-Protected Securities (TIPS), which are U.S. government bonds whose principal and interest rise with the Consumer Price Index. BlackRock launched the fund in December 2003, and it held $14.6 billion as of July 31, 2026. Its 0.18% annual expense ratio costs much more than the 0.03% charged by the very similar Schwab U.S. TIPS ETF (SCHP).
Price history
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TIP -0.3% over the year to Nov 2, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| TIP official prospectus, to Dec 31, 2025 | — | +6.71% | — | +0.89% | +2.90% | — |
| ICE BofA US Broad Market Index index, same period | — | +7.15% | — | -0.42% | +2.01% | — |
| TIP price data to Nov 2, 2026 | +0.1% | -0.3% | +4.1% | 0.0% | +2.2% | +3.3% |
- Over the year to Nov 2, 2026, TIP returned -0.3%, 3rd of 8 among similar funds.
- Its 5-year annualized return was 0.0% and its 10-year +2.2%.
- In the 2020 COVID crash it fell 11.2% and regained its old high 1.3 months after the low.
- Its worst full calendar year was 2022 (-12.2%); its best was 2011 (+13.3%).
- The deepest fall in its price history was 14.6% (Mar 10, 2008 to Nov 24, 2008), recovered by Oct 1, 2009.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +0.1% | — |
| 2025 | +6.8% | +6.71% |
| 2024 | +1.6% | +1.89% |
| 2023 | +3.8% | +3.68% |
| 2022 | -12.2% | -12.13% |
| 2021 | +5.7% | +5.52% |
| 2020 | +10.9% | +10.91% |
| 2019 | +8.3% | +8.28% |
| 2018 | -1.4% | -1.43% |
| 2017 | +2.9% | +2.92% |
| 2016 | +4.7% | +4.56% |
| 2015 | -1.8% | — |
| 2014 | +3.6% | — |
| 2013 | -8.5% | — |
| 2012 | +6.4% | — |
| 2011 | +13.3% | — |
| 2010 | +6.1% | — |
| 2009 | +8.9% | — |
| 2008 | -0.5% | — |
| 2007 | +11.9% | — |
| 2006 | +0.3% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Gained 3.1% over that stretch · deepest drop along the way 14.6%, back to its old high 10.2 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 0.6% over that stretch · deepest drop along the way 11.2%, back to its old high 1.3 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 12.7% over that stretch · deepest drop along the way 14.3%, back to its old high 40.9 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $3.6800 | |
| 2025 | $3.7900 | +41.4% |
| 2024 | $2.6800 | -8.5% |
| 2023 | $2.9300 | -60.5% |
| 2022 | $7.4200 | +33.9% |
| 2021 | $5.5400 | +255.3% |
| 2020 | $1.5591 | -23.6% |
| 2019 | $2.0400 | -31.3% |
| 2018 | $2.9700 | +24.8% |
| 2017 | $2.3800 | +42.5% |
| 2016 | $1.6700 | +351.4% |
| 2015 | $0.3700 | -80.1% |
| 2014 | $1.8600 | +47.6% |
| 2013 | $1.2600 | -53.2% |
| 2012 | $2.6900 | -43.5% |
| 2011 | $4.7600 | +77.3% |
| 2010 | $2.6845 | -33.6% |
| 2009 | $4.0400 | -35.5% |
| 2008 | $6.2600 | +38.8% |
| 2007 | $4.5100 | +5.6% |
| 2006 | $4.2692 |
Living on TIP: its income record, cuts, and how much a $1,000 monthly income takes →
What's inside
As of Jul 31, 2026, the fund held 48 securities; the ten largest made up 35.67% of assets.
| Holding | Weight | |
|---|---|---|
| United States of America Bonds and notes | 3.99% | |
| United States of America Bonds and notes | 3.94% | |
| United States of America Bonds and notes | 3.92% | |
| United States of America Bonds and notes | 3.71% | |
| United States of America Bonds and notes | 3.55% | |
| United States of America Bonds and notes | 3.37% | |
| United States of America Bonds and notes | 3.32% | |
| United States of America Bonds and notes | 3.31% | |
| United States of America Bonds and notes | 3.29% | |
| United States of America Bonds and notes | 3.29% | |
| United States of America Bonds and notes | 3.28% | |
| United States of America Bonds and notes | 3.25% | |
| United States of America Bonds and notes | 3.13% | |
| United States of America Bonds and notes | 3.12% | |
| United States of America Bonds and notes | 3.10% |
By country
United States 99.38%By issuer
US Treasury 99.38%The bonds mature in 6.9 years on average (weighted by size), with an average coupon of 1.3%.
Source: N-PORT holdings report as of Jul 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2026, investors added a net $387.0M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.14%, -0.43%, -0.70%.
How it works
TIP follows the ICE U.S. Treasury Inflation Linked Bond Index. ICE Data Indices, a company independent of BlackRock, runs the index. TIPS principal is adjusted, usually every month, for changes in the Consumer Price Index (CPI). A fixed coupon is then paid on that adjusted principal, so interest payments grow as inflation rises. To be included, a bond needs more than one year left until it matures. It also needs at least $300 million outstanding, not counting the amount the Federal Reserve holds. It must also have a fixed coupon schedule and be issued in U.S. dollars. Treasury bills, floating-rate notes, STRIPS and issues sold mainly to retail investors are left out.
Each bond is weighted by the amount outstanding, minus the Federal Reserve's holdings. The index rebalances on the last calendar day of each month. BlackRock Fund Advisors uses representative sampling: the fund holds a set of bonds chosen to match the index's yield, maturity and duration (sensitivity to interest-rate changes), not necessarily every bond. It must keep at least 80% of assets in index bonds and at least 90% in Treasuries. As of July 31, 2026, it held 48 issues with an average maturity of 6.9 years and no derivatives. Its largest position was about 4%.
TIPS prices still move with real interest rates, meaning rates after inflation. When real rates rise, prices fall. The fund's principal is not guaranteed. The fund may also lend out up to one-third of its assets.
What it really costs
- TIP charges 0.18% a year, versus an average of 0.11% for the similar funds below (6th of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $18 in the first year and $230 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| TIP | $18 | $58 | $101 | $230 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
TIP holds only U.S. Treasury bonds whose principal and interest adjust with the Consumer Price Index, which offers inflation protection that ordinary bonds lack.
The inflation protection comes with interest-rate risk. The fund's deepest drop was 14.6%, from March to November 2008, and it took about 10 months to recover. In the 2020 COVID crash it fell 11.2% in under two weeks and recovered by April 28, 2020. The 2022 bear market was the longest test. Rising real rates caused a 14.3% drop, and 2022 was its worst calendar year, at -12.13%. The fund did not recover until February 2026, nearly 41 months later. Anyone forced to sell shares or draw income in 2022 would have locked in losses.
The trailing 12-month yield was 4.42% as of October 29, 2026, paid quarterly. The 0.18% expense ratio is above the 0.11% average for similar funds. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want bonds whose principal and interest adjust with the Consumer Price Index, backed by the U.S. Treasury, with no corporate credit risk.
- People seeking mid-length TIPS exposure: the average maturity was 6.9 years across 48 Treasury issues as of July 31, 2026.
- Investors who value a long record and size: launched in December 2003, with $14.6 billion in net assets as of July 31, 2026.
Look elsewhere if
- Cost-focused investors: the 0.18% expense ratio compares with 0.03% for SCHP and 0.12% for SPIP, which hold very similar portfolios.
- Anyone needing steady value when rates rise: the fund fell 14.3% in the 2022 bear market and took about 41 months to recover.
- Investors seeking growth: average annual returns were 0.89% over five years and 2.90% over ten years through December 31, 2025.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| TIP this fund | 6.9 yrs | 0.18% | $14.60B | -0.3% | +4.1% |
| SCHP Schwab U.S. TIPS ETF | 7.2 yrs | 0.03% | $16.52B | -0.3% | +4.3% |
| TIPZ PIMCO Broad U.S. TIPS Index ETF | 7.4 yrs | 0.2% | $85.3M | -1.0% | +4.6% |
| SPIP SPDR Portfolio TIPS ETF | 7.4 yrs | 0.12% | $1.01B | -1.0% | +4.5% |
| GOVT iShares U.S. Treasury Bond ETF | 7.4 yrs | 0.05% | $43.55B | -0.5% | +3.8% |
| VGIT Vanguard Intermediate-Term Treasury ETF | 5.5 yrs | 0.03% | $48.41B | -0.2% | +4.5% |
| IEF iShares 7-10 Year Treasury Bond ETF | 8.4 yrs | 0.15% | $41.82B | -1.7% | +4.0% |
| TDTF FlexShares iBoxx 5-Year Target Duration TIP… | 5.2 yrs | 0.18% | $1.04B | 0.0% | +4.8% |
Questions investors ask
Is TIP good for retirement?
TIP may suit retirees who want some of their bonds to keep pace with inflation. It holds only U.S. Treasury inflation-protected bonds, so default risk is low. However, its price can fall sharply when real interest rates rise. It lost 12.13% in 2022 and did not fully recover until February 2026. It works more as an inflation hedge than as a source of stable value.
What's the difference between TIP and SCHP?
The main difference is cost. Both hold portfolios of U.S. TIPS that are very similar, with average maturities of 6.9 years for TIP and 7.2 years for SCHP. TIP charges 0.18% a year, while the Schwab U.S. TIPS ETF charges 0.03%. As of October 29, 2026, SCHP's annualized three-year return was 4.6%, compared with 4.4% for TIP. SCHP was also slightly larger, with $16.5 billion in net assets as of June 30, 2026.
How often does TIP pay dividends?
TIP pays income quarterly. Over the 12 months to October 29, 2026, it paid about $4.70 per share, a trailing yield of 4.42%. Because TIPS principal and interest adjust with the Consumer Price Index, payouts can rise or fall with inflation. That makes the income less predictable than a conventional bond fund's.
Why did TIP lose money in 2022 if TIPS protect against inflation?
TIP lost money in 2022 because real interest rates rose quickly. TIPS adjust for inflation, but their prices still fall when real rates (interest rates after inflation) rise. The prospectus warns that the principal value is not protected. The fund returned -12.13% in 2022, its worst calendar year, and its losses lasted until February 2026. The inflation adjustment helps over time but does not prevent price drops.
What is TIP's expense ratio?
TIP's expense ratio is 0.18% a year, according to its prospectus filed February 23, 2026. Under the SEC's standard example, $10,000 invested with a 5% annual return would cost about $18 after one year, $101 after five years and $230 after ten years. That ranks 6th of 8 among similar funds, whose average is 0.11%.