Treasury Inflation-Protected Securities (TIPS) are a type of U.S. Treasury bond that are designed to protect investors from inflation. TIPS are issued with a fixed interest rate, but the principal value of the bond is adjusted based on the rate of inflation, as measured by the Consumer Price Index (CPI). This means that TIPS can provide investors with a real return, even if inflation is eroding the value of their other investments.
TIPS were first issued in 1997, and they have become increasingly popular with investors in recent years as a way to hedge against inflation. TIPS are available in a variety of maturities, from 5 to 30 years, and they can be purchased through a broker or directly from the U.S. Treasury.