STIP — iShares 0-5 Year TIPS Bond ETF
iShares (BlackRock) · Expense Ratio: 0.03% · Inflation Protected · 5bp below the Inflation Protected category average of 0.08%
Key Facts
| Ticker | STIP |
| Full Name | iShares 0-5 Year TIPS Bond ETF |
| Provider | iShares (BlackRock) |
| Expense Ratio | 0.03% |
| Category | Inflation Protected |
| Assets Under Management | $10B |
| Inception Year | 2010 (16 years ago) |
| Number of Holdings | 27 |
| Dividend Yield | ~3.3% (high) |
| Top Holdings | TIPS 0-5yr |
What Is STIP?
STIP, managed by iShares (BlackRock), launched in 2010, is a well-established ETF with adequate liquidity for most investors in the Inflation Protected category. Inflation-protected bond ETF investing in TIPS and other inflation-linked securities. With $10B in assets under management, it has adequate trading volume for most individual investors.
STIP in a FIRE Portfolio
TIPS protect your portfolio's purchasing power against inflation — critical for FIRE investors with 30-50 year retirement horizons where inflation is the silent killer.
Inflation is the biggest risk for FIRE investors with 30-50 year retirements. TIPS funds like STIP adjust their principal with CPI, ensuring your purchasing power keeps pace with rising prices over decades.
Cost Analysis: How STIP's 0.03% Fee Affects Your FIRE Timeline
At 0.03%, STIP is in the ultra-low-cost tier. On a $100,000 investment, you pay just $30/year in fees. Over 30 years, the fee drag is approximately less than 1% of your total returns — essentially negligible for FIRE planning. This is about as close to "free" as ETFs get.
Dividend Income Potential
With a high dividend yield of approximately 3.3%, here's what STIP could generate in annual income at different portfolio sizes:
| Portfolio Value | Annual Dividend Income | Monthly Income |
|---|---|---|
| $100,000 | $3,300/year | $275/month |
| $250,000 | $8,250/year | $688/month |
| $500,000 | $16,500/year | $1,375/month |
| $1,000,000 | $33,000/year | $2,750/month |
Frequently Asked Questions About STIP
What is the expense ratio for STIP?
STIP has an expense ratio of 0.03%. This is ultra-low-cost — on a $100K portfolio, annual fees are $30. 5bp below the inflation protected category average of 0.08%.
Is STIP good for a FIRE portfolio?
TIPS protect your portfolio's purchasing power against inflation — critical for FIRE investors with 30-50 year retirement horizons where inflation is the silent killer. Its 0.03% expense ratio is ultra-low-cost for the Inflation Protected category.
How does the 0.03% fee affect long-term returns?
At 0.03%, the fee impact is minimal — less than $50/year on a $100K portfolio. Over a 30-year FIRE timeline, the cumulative fee drag is under 1% of total returns, making STIP an extremely efficient choice.
Is STIP liquid enough for my portfolio?
STIP manages $10B in assets — a well-established ETF with adequate liquidity for most investors. For most individual FIRE investors making regular contributions, liquidity is sufficient. If you're investing large lump sums ($100K+), use limit orders to control your execution price.
Similar ETFs in Inflation Protected
- TIP — iShares TIPS Bond ETF (0.19% · Portfolio Hedge)
- VTIP — Vanguard Short-Term Inflation-Protected Securities ETF (0.04% · Portfolio Hedge)
- SCHP — Schwab US TIPS ETF (0.04% · Portfolio Hedge)