Vanguard Short-Term Inflation-Protected Securities ETF
Price
$49.79
YTD
+3.80%
Expense
0.04%
Yield
5.85%
Best ETFs for Inflation Protection
ETFs designed to protect purchasing power during periods of high inflation.
Fighting Inflation with ETFs
Inflation erodes the purchasing power of your savings and fixed-income investments. The right ETFs can protect your portfolio from rising prices through exposure to real assets, inflation-linked bonds, and companies with pricing power that can pass increased costs to consumers.
🏆 Winner — #1 pick
SPDR Gold Shares
Price
$422.60
YTD
+15.20%
Expense
0.40%
Yield
0.00%
Vanguard Real Estate ETF
Price
$97.65
YTD
+5.80%
Expense
0.12%
Yield
3.85%
Energy Select Sector SPDR Fund
Price
$62.29
YTD
-2.50%
Expense
0.09%
Yield
3.45%
iShares S&P GSCI Commodity-Indexed Trust
Price
$33.41
YTD
—
Expense
0.75%
Yield
—
Invesco DB Commodity Index Tracking Fund
Price
$30.86
YTD
—
Expense
0.85%
Yield
—
Frequently asked questions
Why is inflation a concern for investors?
Inflation erodes the purchasing power of savings and fixed-income investments, reducing real returns over time.
Which ETF provides direct inflation protection?
VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) provides inflation protection through short-duration TIPS.
What is the price of VTIP?
VTIP is priced at approximately $49.98.
What yield does VTIP offer?
VTIP offers a yield of around 5.85%.
Which ETF provides gold exposure to hedge against inflation?
GLD (SPDR Gold Shares) provides exposure to physical gold.
What is the price of GLD?
GLD is priced at approximately $429.41.
Does GLD provide a yield?
No, GLD does not provide a yield.
Which ETF gives exposure to real estate as an inflation hedge?
VNQ (Vanguard Real Estate ETF) invests in REITs and real estate companies.
What is the price of VNQ?
VNQ is priced at approximately $90.23.
What yield does VNQ provide?
VNQ offers a yield of about 3.85%.
Which energy-focused ETF can help fight inflation?
XLE (Energy Select Sector SPDR Fund) provides exposure to energy companies, including oil, gas, and renewables.
What is the price of XLE?
XLE is priced at approximately $59.25.
What yield does XLE offer?
XLE provides a yield of around 3.45%.
Which ETF offers broad commodity exposure as an inflation hedge?
GSG (iShares S&P GSCI Commodity-Indexed Trust) provides exposure to a diversified basket of 24 commodities including energy, metals, agriculture, and livestock.
What is the price of GSG?
GSG is priced at approximately $33.45.
Does GSG provide a yield?
GSG does not provide a yield.
Which ETF tracks multiple physical commodities for inflation protection?
DBC (Invesco DB Commodity Index Tracking Fund) offers diversified exposure to 14 heavily traded commodities.
What is the price of DBC?
DBC is priced at approximately $29.33.
Does DBC provide a yield?
DBC does not provide a yield.
How do TIPS ETFs like VTIP protect against inflation?
TIPS adjust their principal based on the Consumer Price Index, ensuring a real return above inflation.
Why include gold in an inflation-fighting portfolio?
Gold maintains purchasing power during periods of rising prices and economic uncertainty.
Why include real estate ETFs like VNQ?
Real estate often appreciates with inflation and provides income through rents, making it a hedge against rising prices.
Why use commodity ETFs like GSG or DBC?
Commodities often rise in value during inflationary periods, helping preserve purchasing power.
Why include energy ETFs like XLE?
Energy costs tend to increase with inflation, and energy companies can pass on higher costs to consumers, providing a hedge.
What is the overall strategy for fighting inflation with ETFs?
Combine TIPS, real assets (like real estate and commodities), and companies with pricing power to preserve and grow wealth despite rising prices.