Gold just smashed $4,000 per ounce, and while most investors were sleeping, one investment delivered a jaw-dropping 52% return this year, while another “safe” inflation hedge barely touched 7%. Both claim to protect you from inflation—but only one is rewriting the rules of wealth preservation. What Wall Street isn’t telling you could cost you thousands.
Let’s break it down. Right now, October 2025, we’re living through one of the most fascinating financial experiments in modern history:
The Federal Reserve is cutting interest rates.
Inflation stubbornly lingers at 2.9%, above the Fed’s 2% target.
The US debt has ballooned to $37 trillion.
Investors? Terrified their savings are quietly eroding. So where should you put your money?
Traditional Inflation Hedges Aren’t What They Used to Be
The classic answer was simple: TIPS (Treasury Inflation-Protected Securities). Safe, predictable, government-backed. Boring, but effective…or so they said.
2025 changed the game. While TIPS ETFs delivered steady returns, gold ETFs have been on an absolute tear. The difference is massive, forcing economists to rethink everything they know about inflation protection.
Here’s the reality for five major inflation-protection ETFs:
The Safe, Steady TIPS ETFs
Schwab US TIPS ETF (SHP)
Assets: $14.4B | Expense Ratio: 0.03%
2025 YTD Return: 6.8% | 1-Year Return: 3.8%
Dividend Yield: 3.37%
Vanguard Short-Term TIPS ETF (VTIP)
Assets: $15.3B | Expense Ratio: 0.03%
Focus: 0–5 year maturities (less sensitive to rate changes)
2025 YTD Return: 5.7% | Dividend: 3.4%
iShares TIPS Bond ETF (TIP)
Assets: $26.19B | Expense Ratio: 0.18%
2025 YTD Return: 6.76% | Dividend Yield: 3.63%
Safe? Yes. Boring? Definitely. Effective at beating inflation? Modestly.
The Game-Changer: Gold ETFs
SPDR Gold Shares (GLD)
Assets: $13.96B | Expense Ratio: 0.4%
2025 YTD Return: 52.45%
1-Year Return: 44.89%
iShares Gold Trust (IAU)
Assets: $61.94B | Expense Ratio: 0.25%
2025 YTD Return: 46.25%
1-Year Return: 45.1%
The numbers speak for themselves. Gold isn’t just keeping up with inflation—it’s obliterating it.
The Middle Ground: Commodity ETF
Invesco Optimum Yield Diversified Commodity Strategy (PDBC)
Assets: $1.04B | Expense Ratio: 0.58%
2025 YTD Return: 3.4% + Dividend: 4.3%
Not as explosive as gold, but a solid way to diversify beyond bonds and precious metals.
Why Gold is Crushing TIPS
Currency Debasement: Rate cuts + massive deficits = more dollars chasing the same goods. Gold doesn’t care about weak dollars—it’s real money.
Low Real Interest Rates: With rates barely above inflation, the opportunity cost of holding non-yielding gold disappears.
Geopolitical & Economic Uncertainty: Elections, AI bubbles, government debt, global tensions…gold is the ultimate safe haven.
💡 Example: $100,000 invested in January 2025:
SHP (TIPS ETF): ~$113,370 after inflation
GLD (Gold ETF): ~$152,450 after inflation
That’s $39,000 more just from choosing the right hedge. Life-changing money.
Smart Strategy for 2025
Retirement/Income Focus: TIPS ETFs (like SHP) for steady cash flow.
Growth Focus: Gold ETFs (IAU preferred over GLD for lower fees) for massive upside.
Balanced Approach: 15–20% Gold ETFs, 15–20% TIPS ETFs, remainder in stocks & bonds.
Pro Tip: Don’t chase performance out of FOMO. Dollar-cost average over 3–6 months to mitigate risk.
The Verdict: Better Than Gold?
In 2025, nothing beats gold. But the real question isn’t “better than gold?”—it’s:
“Which combination of assets protects my portfolio from inflation while hitting my goals?”
For most investors, a mix of gold ETFs + TIPS ETFs + commodity exposure is the sweet spot.
🔥 Ready to start investing in inflation-crushing ETFs? Check out Moomoo for a fast, reliable platform to buy GLD, IAU, and more: Invest on Moomoo Now
💰 Don’t let inflation eat your wealth—take control today!
#InvestSmart #GoldETF #InflationHedge #MoomooInvesting #WealthGrowth #FinancialFreedom #ETFInvesting #MoneyMatters
