TIPS ETFs Draw Inflows as April Inflation Data Shows Energy Price Rise

April data showed the Personal Consumption Expenditures price index rising 3.8 percent from a year earlier, its highest level in nearly three years. Gasoline and other energy goods increased 5.5 percent for the month after a 20.9 percent jump in March.

The rise followed continued effects from energy market disruptions linked to developments in the Strait of Hormuz. The data coincided with renewed interest in Treasury inflation-protected securities.

Inflows into TIPS Funds The Schwab U.S.

TIPS ETF recorded net inflows of $113 million since late February. The iShares TIPS Bond ETF received $826 million over the same period. Data on the inflows came from ETFDb. Recent performance of these funds has drawn attention to interest-rate exposure within the category. Some investors have added positions even as questions remain about how the funds may respond to changing rate conditions.