Questions tagged [tips]

TIPS are "Inflation-Protected Securities" offered by the United States Treasury.

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8 votes
1 answer
850 views

How much in inflation protected securities (TIPS) should I buy?

I'm wondering whether it's worthwhile to allocate some of my bond portfolio in the Vanguard TIPS fund. I plan to work until about 2040, and I prefer (efficient) risk over return. I plan to buy and ...
5 votes
1 answer
680 views

Comparing Treasury Inflation Protected Securities (TIPS) vs Certificates of Deposit

I was wondering what the pros and cons are of choosing one versus the other. There are TIPS that seem to have a better yield than CDs and would therefore make for better places to park savings.
5 votes
1 answer
258 views

Where do I-Bonds fit into personal finance plans?

I'm mainly interested in a finding a medium-term, low risk savings vessel. Bank and Credit Union savings accounts available to me at the moment are all < 1% APY, so inflation-protected securities ...
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3 votes
1 answer
312 views

Buying Large Amounts of Inflation-Protected Treasuries (TIPS)

We are selling our current property, and will be renting in the short term while looking for a property to purchase. We have some equity in the current property, so will get a payout at closing. To ...
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3 votes
1 answer
1k views

If TIPS yields are negative, why do TIPS ETFs have a positive yield?

I've heard that TIPs currently have a negative yield. But the VTIP ETF from Vanguard has a positive yield of about 1.2% right now. Why is that?
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2 votes
2 answers
303 views

Why is VTIP not tracking inflation?

A while back I moved a portion of my wealth into inflation protected bonds as I needed a store of value that could preserve my purchasing power through the current high rates of inflation we were ...
1 vote
1 answer
101 views

Example TIPS and how inflation rate affects its principal

Taken from here. Say the Treasury issues an inflation-protected security with a $1,000 face value and a 3 percent coupon. In the first year, the investor receives $30 in two semiannual payments. That ...
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1 vote
1 answer
61 views

Why does the price of a TIPS bond not match the inflation adjusted principal near or at maturity?

As stated by the US Treasury: With a rise in the index, or inflation, the principal increases. With a fall in the index, or deflation, the principal decreases. I'm curious why a TIPS (912828QV5) ...
1 vote
0 answers
32 views

Where are the prices of secondary market TIPS trades?

The primary market prices for Treasury Inflation-Protected Securities (TIPS) can be found on TreasuryDirect's Auction Results webpage. But where can I find the prices for secondary market trades? Does ...
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0 votes
1 answer
102 views

Always invest in a bond ETF with at least inflation protection?

I abbreviate: inflation-protected bonds = IPB (I choose this term because I don't want to limit this question to US TIPS); yield to maturity = YTM. Whenever deciding to invest in a bond ETF, should ...
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0 votes
1 answer
61 views

Market risk for TIPs vs. I Bonds

Treasury Direct has a good comparison between TIPs and I Bonds: https://www.treasurydirect.gov/indiv/products/prod_tipsvsibonds.htm However, I want to make sure I understand when you can lose ...