TIPS vs Treasury Bonds: Which Is Better in 2026?
Renan Filho · Founder & Tech Builder
Quick answer: For U.S. investors, choosing between Selic Treasury vs IPCA+ Treasury comes down to your view on interest rates and inflation. A Selic-style bond tracks the Federal Reserve's target rate, while an IPCA+ style bond pays CPI plus a fixed spread. Here's how to decide using familiar products like TIPS and floating-rate ETFs.
Frequently asked questions
Can I buy Selic Treasury or IPCA+ Treasury directly from the U.S. Treasury?
Directly, no. But you can buy floating-rate notes and TIPS from the U.S. Treasury, or purchase ETFs from Vanguard and Schwab that track these benchmarks.
How do FOMC rate decisions affect my bond fund?
a floating-rate fund's yield resets with the Fed's target range. If the FOMC raises rates from 4.25-4.50%, your interest income rises; if it cuts, your yield falls.
What's the difference between IPCA+ and TIPS?
IPCA+ is a synthetic label for a bond that pays CPI plus a fixed spread. TIPS use the CPI index exactly that way, with principal adjusted for inflation and a fixed coupon on top.
Are these bonds safe from losses?
They can lose value in the secondary market if rates or inflation expectations move. The SEC (Securities and Exchange Commission) requires disclosure of these risks in the fund prospectus.
How do I report the taxes on these investments?
You'll receive a 1099-DIV from your brokerage, which lists interest income and dividends. Long-term gains from sales are reported on Schedule D and taxed at 0-20%.
Sources and authority
This guide is part of the MoneyApp financial education ecosystem. For tax questions in Brazil, see Agente Tributário.
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MoneyApp · Financial education in United States · Consult SEC (Securities and Exchange Commission) for official guidance.
Important notice: Important notice: this content is for educational and informational purposes only and does NOT constitute investment advice, an offer, or personalized financial advice. Past performance does not guarantee future results. Always consult a qualified professional (SEC, FCA or your local regulator) before making decisions.
