1-Star ETFs Poised to Plunge: iShares Barclays TIPS Bond Fund?

Brian D. Pacampara, The Motley Fool
Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the iShares Barclays TIPS Bond Fund (NYS: TIP) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at iShares Barclays TIPS and see what CAPS investors are saying about the ETF right now.

iShares Barclays TIPSfacts

Inception

December 2003

Total Net Assets

$23.2 billion

Investment Approach

Seeks results that correspond to the price and yield performance of the inflation-protected sector of the United States Treasury market, as defined by the Barclays U.S. Treasury Inflation Protected Securities (TIPS) Index.

Expense Ratio

0.2%

Dividend Yield

2.7%

1-Year / 3-Year / 5-Year Annualized Returns

7.8% / 9.6% / 7.9%

Alternatives

SPDR Barclays Capital TIPS
PIMCO 1-5 Year U.S. TIPS Index ETF
iShares Barclays Aggregate Bond


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 80% of the 88 All-Star members who have rated iShares Barclays TIPS believe the ETF will underperform the S&P 500 going forward.

Earlier this month, one of those Fools, TerryHogan, listed a few of the headwinds working against the ETF: "With Chinese growth slowing a bit, Europe in the crapper, U.S. unemployment above 8%, [natural gas] constantly reaching new depths (for fracking and price) and oil not going crazy, I don't think the prospects for inflation are too great, Bernanke notwithstanding."

If you want market-thumping returns, you need to protect your portfolio from any undue risk. Luckily, our special report on ETFs highlights three funds that are poised to soar in the next recovery. It's 100% free, but won't last forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow theTrackPoisedToCAPS account.

The article 1-Star ETFs Poised to Plunge: iShares Barclays TIPS Bond Fund? originally appeared on Fool.com.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement