TIPS for Defined Contribution Investors

Treasury Inflation-Protected Securities, or TIPS, are U.S. Treasury debt securities whose principal is tied to the Consumer Price Index (CPI). They are possibly the most overlooked and least understood bonds available to investors. This paper, geared toward our defined contribution clients, provides an introduction to TIPS, details how TIPS work, and lays out a case for adding a TIPS fund to the menu of participant investment offerings.