Funds in Refinitiv Lipper’s Inflation-Protected Bond (TIPS) classification (including both mutual funds and ETFs) took in $305 million of net new money for the fund-flows week ended Wednesday, October 7. These results marked the group’s sixteenth straight week of net positive flows which have produced a best-ever quarterly net inflow of $13.4 billion during the third quarter. This number shattered the previous record inflow of $8.2 billion which occurred during the second quarter of 2009 (Refinitiv Lipper began tracking flows data on TIPS funds during the third quarter of 2002).
TIPS is an acronym for Treasury inflation-protected securities. As its name suggests, TIPS are a type of Treasury bond issued by the U.S. government which are designed to safeguard investors against a spike in inflation. It may seem counterintuitive that TIPS funds have prospered from a fund-flows (and performance) perspective at a time when the country is struggling to fight