TIPs, or Treasury Inflation Protected Securities, have become an investor favorite. Lately, there have been signs of momentum in these funds.
There are great expectations from ETFs that hold Treasuries that give some sort of protection from inflation. These Treasuries adjusted to the CPI have notably been outperforming nominal government notes in the past two weeks, reports Murray Coleman for Barron’s.
Although there is not a lot of threat of inflation in the market at the moment, the thought is clearly not far from investors’ minds. This is especially so, as rates and yields have been holding near steady lows for some time. [Inflation or Deflation: ETFs That Have You Covered.]
In a note to clients, Goldman Sachs is estimating that the Fed could buy as much as $2 trillion in bonds in a new round of quantitative easing to stimulate markets. It may be too soon to make any calls, but watch the trend. [‘Tis the Season for TIPS ETFs?]
- iShares Barclays TIPS (NYSEArca: TIP)
- PIMCO 1-5 Year U.S. TIPS (NYSEArca: STPZ)
- SPDR Barclays Capital TIPS (NYSEArca: IPE)
Tisha Guerrero contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.