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 …
Patrick, you wrote: "Brokered CDs do not compound interest, so CDs that pay every six months or annually are not…