ETF pairs commodities with TIPS; 30-day yield 10.3%

WisdomTree’s Inflation Plus Fund (WTIP) turned one year old last month. The actively managed exchange-traded fund pairs a commodities basket with Treasury Inflation-Protected Securities (TIPS) and reported a 30-day SEC yield of 10.3%. Fund managers can adjust allocations between commodities and TIPS in response to market conditions.

Inflation pressures moved higher after the Iran conflict. Tensions around the Strait of Hormuz pushed energy costs up and complicated the Federal Reserve’s plans for interest-rate cuts. Fed funds futures imply long odds of a July rate cut. At the same time, talks of a U.S.–Iran agreement put downward pressure on oil prices; those developments remain fragile.

The commodities sleeve of WTIP includes exposure to metals such as gold, which recently retreated after earlier gains. Historical patterns show gold often enters a seasonally stronger period in the coming months. The TIPS component adjusts principal and interest with changes in the Consumer Price Index, providing an income stream tied to inflation.

Morningstar analyst Joe Bullard said uncertainty around the Strait of Hormuz keeps oil prices and inflation on investors’ radar. He added that oil is a major input for many industries and that higher oil costs can raise corporate expenses with a lag. He noted that commodity funds have tended to perform better during periods of higher inflation.

The fund’s 30-day SEC yield reflects recent income generation and does not guarantee future payouts. Investors and advisers considering WTIP face risks that include commodity-price swings, geopolitical events and shifts in monetary policy expectations.