Back in late July, we wrote a blog post to dive deeper into one of our newest Funds, the WisdomTree Inflation Plus (WTIP). We walked through how the Fund is built, why we think it offers a stronger way to hedge against inflation and how it had been performing up to that point. At its core, WTIP combines several different asset types, Treasury Inflation-Protected Securities (TIPS), commodity futures, gold and silver and even a small allocation to Bitcoin, to help navigate both steady inflation and sudden price shocks.

In this post, we’ll revisit how the Fund is structured as a quick refresher. We’ll also look at how it’s performed since July and what’s been driving those returns and share a few thoughts on what we see ahead.

Refresher

WTIP is designed with a simple idea: inflation doesn’t always show up the same way, so why fight it with just one tool? The Fund combines TIPS and commodity futures, which have historically done well when inflation catches markets off guard. TIPS help with the slow-and-steady kind of inflation, while commodities can kick in during sudden spikes, like when supply chains get disrupted.

What makes WTIP different is how it puts these pieces together. Instead of choosing between them, it builds a base of TIPS and then adds commodity exposure on top, without needing extra capital to do it. That layered approach means investors can get a broader, more flexible inflation hedge without overcomplicating things. It’s a practical way to prepare for different kinds of inflation in one fund.

When it comes to investing in commodities, WTIP takes a different path than most traditional commodity strategies. Rather than just buying and holding a basket of commodities, the Fund actively adjusts its positions based on market momentum. About 80% of its commodity exposure shifts between long and short positions, using a momentum-based approach that looks at what’s gaining or losing strength in real time. It also holds steady positions in gold and silver, two assets that have historically done well when inflation rises.

In addition to that, WTIP can allocate up to 5% of the portfolio to Bitcoin through exchange-traded products. It’s a small slice, but one that reflects growing interest in Bitcoin as a potential hedge against the weakening of traditional currencies. Altogether, for every $100 invested, the Fund creates around $195 of market exposure, mostly in TIPS, commodities, a bit of cash and potentially Bitcoin. It’s a thoughtful mix aimed at covering a range of inflation scenarios, all within a single ETF.

Performance Update

When we wrote the last blog post in late July, WTIP was off to a strong start. As of July 15, the Fund had outperformed both the Bloomberg U.S. Aggregate Bond Index and the Bloomberg Commodity Index by 72 and 35 basis points, respectively, thanks in large part to a rally in Bitcoin prices.

Since then, even with Bitcoin pulling back by about 11%, WTIP has continued to perform well. The Fund gained another 5.61% after July 15, widening its lead over both benchmarks. It has now outpaced the Bloomberg U.S. Aggregate Index by a total of 277 basis points and the Bloomberg Commodity Index by 57 basis points since inception. That kind of steady performance, even in the face of volatility, speaks to the strength of the Fund’s multi-asset approach.

Figure 1: Growth of $100

This time, the majority of outperformance has come from smart, momentum-guided allocations to commodities, mainly gold and silver. And this is a testament to the way the Fund is structured, a multi-asset approach to manage inflation risk.

Where Do We Go from Here?

We believe WTIP's strong performance still has room to run. While Bitcoin has recently pulled back from its October highs of $125,000 to around the $80,000 level, a key support both technically and psychologically, the broader case for including Bitcoin in a portfolio remains solid. Institutional interest in the asset continues to grow, and the administration has generally been supportive of the crypto space.

As for gold and other precious metals, even with prices coming down to $4,000 from their recent peak of around $4,300, we remain optimistic. Ongoing trade uncertainty, rising government debt levels and growing concerns around fiscal stability are all factors likely to support demand for the asset class. Central banks have been steadily increasing their gold reserves, and both institutional and retail investors continue to see value in the asset class.

Taken together, these trends suggest that the environment remains favorable for the key components of WTIP's strategy.

Conclusion

For investors looking to protect their portfolios against inflation, we believe WTIP remains a compelling choice. It offers a new, practical approach that goes beyond traditional inflation strategies. Instead of relying on just one type of asset class, WTIP combines inflation-linked bonds (TIPS) with dynamic exposure to commodities, as well as longer-term stores of value like gold and silver. This mix gives the Fund the flexibility to respond to a range of inflation scenarios, whether gradual or sudden.

On top of that, WTIP can also serve as a useful portfolio diversifier. Its systematic, momentum-based process aims to capture upside while managing downside risk, and its structure is designed to adapt to shifting markets. With its broad, modern toolkit and forward-looking design, WTIP stands out as a timely solution for today’s uncertain economic environment.