Since the beginning of quantitative easing by global central banks, one of the major goals was to get reflation/inflation of wages, goods, and services across the economy.
In order to be protected from the expected inflation to come, many allocators had added inflation exposure via TIPS and other similar inflation vehicles, and have done so since 2008, only to see asset price inflation, but not underlying inflation occur.
As a result, many allocators and central banks were left scratching their heads: there was so much liquidity, but no inflation for over a decade.
Enter a global pandemic, and bam, we’ve since found that inflation.
Now, global supply chain disruptions, combined with the “great resignation” and other pandemic factors impacting employment, we’re seeing the inflation that central banks so desperately wanted. This inflation means that investors quickly needed to gain exposure to rising inflation/CPI in their portfolios.
One of the most direct ways is by allocating to TIPS (Treasury Inflation Protected Securities). TIPS are linked to CPI, which adjusts and compensates bond holders for that inflation, and they are the most direct inflation hedge, as TIPS’ principal is linked to the CPI-U (Consumer Price Index for All Urban Consumers).
In this article, we’re outlining the top 10 owners of TIPS ETFs. By the end of the article, you’ll have a clear understanding of the landscape.
1. MTC Wealth Management: $4,475,879,000
Investment strategies:
- PIMCO 1-5 Year US TIPS Index ETF: $4,497,000
- PIMCO 1-5 Year US TIPS Index ETF: $4,471,382,000
2. Valmark Advisers: $324,101,000
Investment strategies:
- Vanguard Short-Term Infl-Prot Sec Idx ETF: $303,871,000
- FlexShares iBoxx 3Yr Target Dur TIPS ETF: $14,294,000
- Schwab US TIPS: $5,936,000
3. Morgan Stanley: $264,236,000
Investment strategies:
- Quadratic Interest Rate Vol & Infl H ETF: $181,786,000
- Western Asset Infl-Linked Opps & Inc Fd: $28,883,000
- Western Asset Infl-Linked Opps & Inc Fd: $27,843,000
- Western Asset Inflation-Linked Income Fd: $13,158,000
- Western Asset Inflation-Linked Income Fd: $12,054,000
- Quadratic Interest Rate Vol & Infl H ETF: $277,000
- Simplify Interest Rate Hedge ETF: $163,000
- Quadratic Interest Rate Vol & Infl H ETF: $70,000
- Simplify Interest Rate Hedge ETF: $2,000
4. Wells Fargo: $202,311,000
Investment strategies:
- Quadratic Interest Rate Vol & Infl H ETF: $120,378,000
- Western Asset Infl-Linked Opps & Inc Fd: $27,738,000
- Western Asset Infl-Linked Opps & Inc Fd: $26,785,000
- Quadratic Interest Rate Vol & Infl H ETF: $20,853,000
- Western Asset Infl-Linked Opps & Inc Fd: $1,471,000
- Western Asset Infl-Linked Opps & Inc Fd: $1,425,000
- Western Asset Inflation-Linked Income Fd: $1,303,000
- Western Asset Inflation-Linked Income Fd: $1,318,000
- Western Asset Inflation-Linked Income Fd: $836,000
- Western Asset Infl-Linked Opps & Inc Fd: $78,000
- Western Asset Infl-Linked Opps & Inc Fd: $71,000
- Quadratic Interest Rate Vol & Infl H ETF: $39,000
- Western Asset Inflation-Linked Income Fd: $14,000
- Western Asset Inflation-Linked Income Fd: $1,000
- Western Asset Inflation-Linked Income Fd: $1,000
5. Alesco Advisors LLC: $200,565,000
Investment strategies:
- Schwab US TIPS: $119,889,000
- Vanguard Short-Term Infl-Prot Sec Idx ETF: $77,198,000
- PIMCO 1-5 Year US TIPS Index ETF: $3,478,000
6. Bank of America Merrill Lynch: $199,873,000
Investment strategies:
- Quadratic Interest Rate Vol & Infl H ETF: $171,133,000
- Western Asset Infl-Linked Opps & Inc Fd: $7,742,000
- Western Asset Infl-Linked Opps & Inc Fd: $7,010,000
- Western Asset Inflation-Linked Income Fd: $7,272,000
- Western Asset Inflation-Linked Income Fd: $6,466,000
- Quadratic Interest Rate Vol & Infl H ETF: $249,000
- Quadratic Interest Rate Vol & Infl H ETF: $1,000
7. Charles Schwab Investment Management: $187,554,000
Investment strategies:
- Schwab US TIPS: $97,253,000
- Schwab US TIPS: $90,301,000
8. Hightower Advisors LLC: $123,539,000
Investment strategies:
- Vanguard Short-Term Infl-Prot Sec Idx ETF: $99,083,000
- Western Asset Infl-Linked Opps & Inc Fd: $8,333,000
- Quadratic Interest Rate Vol & Infl H ETF: $11,926,000
- Schwab US TIPS: $3,693,000
- PIMCO 1-5 Year US TIPS Index ETF: $504,000
9. RBC Wealth Management: $119,781,000
Investment strategies:
- Quadratic Interest Rate Vol & Infl H ETF: $57,469,000
- Quadratic Interest Rate Vol & Infl H ETF: $47,422,000
- Western Asset Infl-Linked Opps & Inc Fd: $3,532,000
- Western Asset Infl-Linked Opps & Inc Fd: $3,350,000
- Quadratic Interest Rate Vol & Infl H ETF: $6,109,000
- Western Asset Inflation-Linked Income Fd: $378,000
- Simplify Interest Rate Hedge ETF: $1,031,000
- Western Asset Inflation-Linked Income Fd: $166,000
- Quadratic Interest Rate Vol & Infl H ETF: $275,000
- Quadratic Interest Rate Vol & Infl H ETF: $37,000
- Western Asset Infl-Linked Opps & Inc Fd: $6,000
- Western Asset Infl-Linked Opps & Inc Fd: $6,000
10. Richard Bernstein Advisors (RBA): $111,354,000
Investment strategies:
- Quadratic Interest Rate Vol & Infl H ETF: $111,354,000
The list above represents the top ten TIPS ETFs holders within our institutional investor database, Dakota Marketplace. To view the rest of the list and learn more about the data within the platform, we’d love to offer a free trial.
