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

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 (NYSE: 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 TIPS facts

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."

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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.


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