Hi,My two cents: VTIP is not like cash. The fund had a max drop of 4.5% during the recent period of rising rates.My investment plan calls for a certain % of asset allocation to TIPS, which way back when meant the standard TIPS index fund (say duration 6.6 years) - I guess we would call that intermediate term? Anyway, now forced into these short term TIPS (duration 2.4 years) funds in a workplace account, for example, does anyone have an opinion as to how to account for them? I reason that I am getting roughly the same CPI-inflation protection exposure? But somewhat less of a duration, in terms of real rates? Anything less than 100% vs. the old TIPS funds I would call cash. My spreadsheet is smart enough to fix things like this - say for instance an emerging markets fund is only 80% EM - but only if I am smart enough to give it some weightings to work with. Thanks.
Short-term it may be, but it's still made of bonds.
I think you have misunderstood. It is a spreadsheet adjustment, the short term TIPS fund might be weighted (for example) as something like 95% TIP and 5% cash. I am aware of it's composition, duration and relative performance.
Statistics: Posted by Tramper Al — Sat Nov 30, 2024 8:37 am — Replies 42 — Views 2386