ETFs that invest in Treasury Inflation Protected Securities have been stuck in a range for over two months as traders’ eye inflation data and Treasury yields. Last week, the government said consumer prices rose 0.4% in April as gasoline prices surged. Some investors have been using ETFs that invest in TIPS in the bond segment of their portfolios. TIPS are seen as a way to fight inflation and protect purchasing power. The group includes iShares Barclays TIPS Bond Fund (NYSEArca: TIP), PIMCO 1-5 Year TIPS (NYSEArca: STPZ) and SPDR Barclays Capital TIPS ETF (NYSEArca: IPE). [TIPS ETFs Look for Direction on Inflation, Treasury Yields]
Goldman Sachs (NYSE: GS) is feeling heat for its conduct during the financial crisis following a scalding Senate panel report. A recent Matt Taibbi article in Rolling Stone lambasting Goldman has also stirred the pot. “It now appears that the pressure on the Justice Department to bring a criminal lawsuit against Goldman is building to a high pitch,” Rochdale Securities said in a recent note on Goldman. [Goldman Legal Woes a Reminder of Financial ETFs’ Risk]
Gregory A. Clay contributed to this article.
