WisdomTree WTIP blends TIPS and commodities, up 19% YTD

WisdomTree’s WTIP, the Inflation Plus Fund, has gained 19.07% year-to-date. The fund combines Treasury Inflation-Protected Securities (TIPS) with an allocation to commodities. The largest traditional TIPS ETF has risen 1.26% since the start of 2026.

WTIP holds an inflation-linked bond portfolio alongside commodity exposure. The commodities sleeve includes energy and other raw materials that have seen price gains tied to supply constraints and developments in energy markets. Fund managers use that mix to seek returns that differ from plain-vanilla TIPS funds.

Market participants point to several factors supporting the fund’s performance. Commodity prices have climbed in recent months amid supply disruptions and tighter markets for some energy products. At the same time, some investors view TIPS breakeven rates as offering relatively attractive valuation for inflation protection.

BNP Paribas highlighted the macro backdrop for inflation-linked assets, writing that the environment includes “a fragile geopolitical environment, supply constraints, fiscal expansion in basically every developed-market economy, and energy transitions.” The bank added that “from a valuation perspective, inflation protection still looks reasonably priced, and that is true for breakevens.”

BNP Paribas also noted that slower growth and uncertain inflation can support demand for inflation-linked bonds because they offer income plus inflation protection. The firm said that the recent rally in inflation-sensitive assets does not remove their appeal in some portfolios.

The investor base for TIPS has broadened in recent years. Pension funds and insurers historically drove demand because their liabilities are linked to inflation. Since 2020, asset managers, central banks and sovereign wealth funds have increased allocations to inflation-linked strategies, according to BNP Paribas.

The commentary on WTIP’s performance was produced by a third party and was sponsored by WisdomTree. WisdomTree noted the content was provided for educational purposes and that the views expressed belong to the third party rather than to WisdomTree.