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Best Of TIPS ETFs: Expenses, Dividends, and Returns
June 12, 2012 at 07:00 AM EDT
As central banks around the world continue to plow money into the financial system, investors have been bracing for an eventual uptick in inflationary pressures. While reported inflation throughout the developed world has remained tame–most markets are well within their official “comfort zone”–anxiety over rising prices remains. When the global economy stabilizes and consumers become more able to bear price increases, many expect CPI to spike [see Black Swan Hyperinflation ETFdb Portfolio]. There are a number of different tools for combating inflation. Some swear by commodities, which logically tend to appreciate when inflation arrives. Others believe equities make for a good bet in inflationary environments. But perhaps the most common tool for “inflation-proofing” a portfolio are inflation-protected bonds, securities whose face value adjusts based on reported inflation metrics. ETFs have become common vehicles for holding TIPS; the Inflation Protected Bonds ETFdb Category consists of more than a dozen exchange-traded products, including [...] Click here to read the original article on ETFdb.com. Related Posts: PIMCO Launches Active TIPS ETF (ILB) Bond ETFs For Every Objective iShares Rolls Out International TIPS ETFs Inflation-Fighting ETFs Back In Focus TIPS ETFs: Looking Beyond TIP
As central banks around the world continue to plow money into the financial system, investors have been bracing for an eventual uptick in inflationary pressures. While reported inflation throughout the developed world has remained tame–most markets are well within their official “comfort zone”–anxiety over rising prices remains. When the global economy stabilizes and consumers become more able to bear price increases, many expect CPI to spike [see Black Swan Hyperinflation ETFdb Portfolio]. There are a number of different tools for combating inflation. Some swear by commodities, which logically tend to appreciate when inflation arrives. Others believe equities make for a good bet in inflationary environments. But perhaps the most common tool for “inflation-proofing” a portfolio are inflation-protected bonds, securities whose face value adjusts based on reported inflation metrics. ETFs have become common vehicles for holding TIPS; the Inflation Protected Bonds ETFdb Category consists of more than a dozen exchange-traded products, including [...]
