Summary
- Short-term TIPS have real yields negative to inflation.
- An I Bond with a fixed rate of 0.0% will match inflation and provide a better return than a short-term TIPS.
- For a short-term TIPS fund to outperform, real yields will have to fall deeper into the negative range, which seems unlikely.
I suggesting that you take a look at an alternative to short-term TIPS funds: U.S. Series I Savings Bonds.
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