# How to protect your money from inflation

> As inflation stays above target, investors are turning to TIPS, commodities and infrastructure to hedge their portfolios.
- Title: How to protect your money from inflation · CNBC | Shortify
- Summary: As inflation stays above target, investors are turning to TIPS, commodities and infrastructure to hedge their portfolios. With inflation above the Federal…
- Keywords: inflation, tips, commodities, infrastructure, portfolio hedging, treasury bonds, gold, real estate investment trusts, consumer price index, federal reserve, business, finance
- Source: CNBC — https://cnbc.com/2026/10/13/inflation-hedge-tips-commodities-infrastructure.html
- Author: Michelle Fox
- Published: 2026-10-13T20:42:56+00:00
- Read time: 2 min
- Topics: inflation, tips, commodities, infrastructure, portfolio hedging, treasury bonds, gold, real estate investment trusts, consumer price index, federal reserve, business, finance
## Inflation stays stubbornly high
Inflation has fallen sharply from its nine point one percent peak in twenty twenty-two but remains well above the Federal Reserve's two percent target.
## Consumer worry about prices rising
The New York Fed's Survey of Consumer Expectations showed the one-year inflation outlook in September climbed to three point nine percent, its highest level since May twenty twenty-three.
## TIPS offer high yields but mixed returns
Treasury Inflation-Protected securities, or TIPS, have real yields now at multi-decade highs. The ten-year TIPS yield is currently at two point eight seven percent, levels not seen since November twenty twenty-eight.
## TIPS funds have lost money this year
The iShares TIPS Bond ETF, which tracks the ICE U.S. Treasury Inflation Linked Bond Index, has a total return of minus one point one six percent year-to-date due to rising interest rates.
## How TIPS protect against inflation
TIPS pay a fixed coupon but as inflation rises, the principal value of the bond increases based on changes in the non-seasonally adjusted CPI for All Urban Consumers, with a three-month lag.
## Rising real yields hurt TIPS prices
TIPS' poor performance this year isn't because of a surge in inflation expectations.Almost all the increase has been due to rising real yields, driven by robust economic growth and a U.S.
## Short-term TIPS look more attractive
Short-term TIPS provide more protection against rate increases and look attractive. Funds focusing on short-term TIPS include Vanguard Short-Term Inflation-Protected Securities ETF, iShares zero to five Year TIPS Bond ETF and PIMCO one to five…
## Diversify with commodities and gold
Rick Rieder, BlackRock's chief investment officer for global fixed income, suggests a multi-pronged strategy including equities, commodities and alternative assets.
## Infrastructure offers inflation protection
Infrastructure operators of roads, ports and bridges tend to be toll takers, collecting long-term revenue under contracts that include inflation riders or built-in price adjustments.
## Multi-asset funds combine strategies
Broad inflation-protection funds include State Street Multi-Asset Real Return ETF, Fidelity Strategic Real Return Fund and PIMCO Inflation Response Multi-Asset Fund. The PIMCO fund's holdings include TIPS, commodities, gold and real estate investment trusts.
## Supply shocks could push inflation higher
Jason Draho, head of asset allocation Americas at UBS Global Wealth Management, says it makes sense to add protection against another move higher.

> The risk now is there will be supply side shocks that could push up inflation again.
## Key takeaway

With inflation above the Federal Reserve's two percent target, financial advisors recommend a mix of TIPS, commodities, infrastructure and gold to protect investment returns.