Core Viewpoint - The current macroeconomic environment is characterized by potential inflation risks driven by tariff policies, suggesting that fixed income investors should consider treasury-inflation protected securities (TIPS) ETFs as a defensive strategy [1][2]. Group 1: Fund Analysis - The Vanguard Total Inflation-Protected Securities ETF (VTP) and the Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) are highlighted as effective tools for managing inflation risk, especially in light of rising inflation expectations due to tariff policies [2][3]. - VTP aims to provide returns that align closely with realized inflation by investing in TIPS with intermediate and long-term maturities, offering greater yield potential while maintaining inflation protection [3][4]. - VTIP focuses on TIPS with short-term maturities of less than five years, which helps mitigate additional rate risk [3][4]. Group 2: Cost and Transparency - Both VTP and VTIP are cost-effective options for inflation protection, with expense ratios of 0.05% and 0.03% respectively [4]. - The ETFs provide greater transparency compared to holding individual bonds, allowing investors to better track TIPS exposure [5]. Group 3: Price Dynamics - The value of ETFs changes in real-time based on market conditions, unlike individual TIPS, which do not reflect price changes until sold before maturity [6][7]. - This real-time pricing mechanism of ETFs allows for more frequent updates on value, providing a clearer picture of investment performance [6][7].