TIP: Inflation Protection Is Having A Big, Happy Run In 2019

Summary

  • The TIP ETF has had a total return of 8.33% so far in 2019, slightly outperforming the overall bond market.
  • Shorter-term TIPS funds have also performed well, but the gain has been less dramatic.
  • A relatively low 10-year inflation breakeven rate indicates that TIPS remain a solid choice versus nominal Treasurys. But TIPS funds are riskier today than they were a year ago.

Back on November 20, 2018 — yes, just nine months ago — I wrote an analysis of inflation-protected ETFs and asked, “Is It Time To Buy TIPS ETFs, Mutual Funds?” My conclusion was: Yes, the time is right, especially for shorter-term TIPS funds.

But I didn’t expect what would happen in the next nine months …

Read my full analysis on SeekingAlpha.com

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About Tipswatch

Author of Tipswatch.com blog, David Enna is a long-time journalist based in Charlotte, N.C. A past winner of two Society of American Business Editors and Writers awards, he has written on real estate and home finance, and was a founding editor of The Charlotte Observer's website.
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