TIP Profile
The iShares TIPS Bond ETF aims to provide investors with exposure to U.S. Treasury Inflation-Protected Securities (TIPS). The fund commits to investing at least 80% of its assets in securities that are part of the underlying index, ensuring a targeted approach to capturing inflation-protected securities. TIPS are U.S. government bonds designed to protect investors from inflation by adjusting their principal value based on changes in the Consumer Price Index (CPI). This feature helps maintain the purchasing power of the investment over time.
The underlying index for the fund includes all publicly-issued TIPS that have a minimum of one year remaining to maturity. It exclusively focuses on securities that are rated investment-grade, reflecting their creditworthiness and stability. Furthermore, the index targets TIPS with a minimum of $300 million in outstanding face value, ensuring liquidity and a broad market representation. This selection criterion helps the fund track a representative benchmark of inflation-protected securities issued by the U.S. Treasury.
In addition to its primary investment in TIPS, the fund maintains a strategy of investing at least 90% of its assets in U.S. Treasury securities. This emphasis on U.S. government-backed securities enhances the fund's safety and stability, as Treasury securities are considered among the lowest-risk investments due to their backing by the full faith and credit of the U.S. government. By focusing on TIPS and Treasury securities, the fund aims to offer investors a reliable hedge against inflation while preserving capital.
Managed by BlackRock, a leading global asset management firm, the iShares TIPS Bond ETF benefits from the firm's extensive expertise in fixed income investing and its robust research capabilities. BlackRock employs a rigorous investment process to ensure that the fund accurately reflects the performance of the underlying index. The ETF is designed for investors seeking to protect their portfolios from inflation and achieve stable returns through a diversified investment in inflation-protected U.S. government securities.
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