TIP — iShares TIPS Bond ETF
iShares (BlackRock) · Expense Ratio: 0.19% · Inflation Protected · 11bp above the Inflation Protected category average of 0.08%
Key Facts
| Ticker | TIP |
| Full Name | iShares TIPS Bond ETF |
| Provider | iShares (BlackRock) |
| Expense Ratio | 0.19% |
| Category | Inflation Protected |
| Assets Under Management | $25B |
| Inception Year | 2003 (23 years ago) |
| Number of Holdings | 48 |
| Dividend Yield | ~3.5% (high) |
| Top Holdings | TIPS 5yr, TIPS 10yr, TIPS 30yr |
What Is TIP?
TIP, managed by iShares (BlackRock), launched in 2003, is a major ETF with deep liquidity and tight bid-ask spreads in the Inflation Protected category. Inflation-protected bond ETF investing in TIPS and other inflation-linked securities. With $25B in assets under management, it benefits from deep institutional liquidity and tight bid-ask spreads.
TIP 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 TIP adjust their principal with CPI, ensuring your purchasing power keeps pace with rising prices over decades.
Cost Analysis: How TIP's 0.19% Fee Affects Your FIRE Timeline
At 0.19%, TIP is moderately priced. Annual cost on a $100K position: $190. Over 30 years, fees could consume approximately 1.1% of total returns. On a $1M FIRE portfolio, cumulative fees approach $19,000. Compare with lower-cost peers in Inflation Protected: .
Dividend Income Potential
With a high dividend yield of approximately 3.5%, here's what TIP could generate in annual income at different portfolio sizes:
| Portfolio Value | Annual Dividend Income | Monthly Income |
|---|---|---|
| $100,000 | $3,500/year | $292/month |
| $250,000 | $8,750/year | $729/month |
| $500,000 | $17,500/year | $1,458/month |
| $1,000,000 | $35,000/year | $2,917/month |
Frequently Asked Questions About TIP
What is the expense ratio for TIP?
TIP has an expense ratio of 0.19%. This is moderately priced — on a $100K portfolio, annual fees are $190. 11bp above the inflation protected category average of 0.08%.
Is TIP 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 0.19% expense ratio is moderately priced for the Inflation Protected category.
How does the 0.19% fee affect long-term returns?
At 0.19%, you'll pay $190/year per $100K invested. Over 30 years, fees reduce total returns by approximately 1.1%. Use the embedded calculator below to model the exact impact on your specific portfolio.
Similar ETFs in Inflation Protected
- VTIP — Vanguard Short-Term Inflation-Protected Securities ETF (0.04% · Portfolio Hedge)
- STIP — iShares 0-5 Year TIPS Bond ETF (0.03% · Portfolio Hedge)
- SCHP — Schwab US TIPS ETF (0.04% · Portfolio Hedge)