---
title: "There’s a bond ETF that resets its income for inflation every six months. Almost none of your friends own it."
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/287072667.md"
description: "The Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) offers a unique investment option that adjusts its income for inflation every six months. With U.S. inflation at 3.8%, VTIP provides a hedge against rising prices by holding Treasury Inflation-Protected Securities (TIPS). Unlike traditional bonds, TIPS increase their principal value with inflation, enhancing coupon payments. VTIP's focus on short-term maturities reduces interest rate risk, making it suitable for investors seeking stability amid inflationary pressures."
datetime: "2026-05-20T13:13:18.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/287072667.md)
  - [en](https://longbridge.com/en/news/287072667.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/287072667.md)
---

# There’s a bond ETF that resets its income for inflation every six months. Almost none of your friends own it.

Quick Read TIPS adjust for inflation. Unlike nominal bonds with fixed principal values, TIPS increase their face value alongside CPI inflation, which also boosts coupon payments when inflation unexpectedly rises. VTIP reduces interest rate risk. By focusing on short-term TIPS with a 2....

### Related Stocks

- [VTIP.US](https://longbridge.com/en/quote/VTIP.US.md)

## Related News & Research

- [ETF sectors hit highs despite inflation and geopolitical risks](https://longbridge.com/en/news/287137352.md)
- [Bond ETFs Are Having A Banner Year As Investors Rush To Lock In High Yields](https://longbridge.com/en/news/287124290.md)
- [U.S. 9-yr 8-mo indexed notes high yield 2.169%](https://longbridge.com/en/news/287254647.md)
- [SA analyst warns that inflation pressures could persist without a Middle East deal](https://longbridge.com/en/news/286814458.md)
- [Lido Advisors Adds $76 Million to BSCR Stake, Making the Bond ETF Its Second-Largest Holding](https://longbridge.com/en/news/287092182.md)