Tips etf reddit. So far it's doing well for me.

Tips etf reddit if the reverse repo market freezes up for overnight lending, short term bonds might go haywire Jun 11, 2024 · In addition, iShares now offers a series of target-maturity TIPS ETFs with maturity dates between 2024 and 2034. 34%. Disclaimer: I don't advise anybody to buy an ETF only because its below the 50MA. TIP swaps are defined (fincyclopedia) as An interest rate swap that is based on the structure of TIPS securities. Reply reply Other then the no-expense ratio, is there any advantage to building a TIPS ladder over just throwing the money into a TIPS ETF like VTIP? VTIP is on 0. "(1)1000 stocks are selected based on trading value in the past 3 years and the market value on the selection base date (the end of June) of the Annual Review, (2)Each stock is scored by 3-year average ROE, 3-year cumulative operating profit and market value on the selection base date with the weights on the each indicator 40%, 40%, 20% respectively, (3)400 stocks are selected by the final First things first, your portfolio cant be 105%, double check your portfolio percentage splits. This is only a tool which can help know when to enter the market. Most have applied a fee waiver now. So the ETF sells VIX futures and buys tail protection in the case of a crash. Just want some people opinions it’s dividend yield is 7. if interest rates go up, that tends to force prices down for existing bonds relative to newer bonds. Seperate the covered calls ETFs from the regular dividends ones. Learn about budgeting, saving, getting out of debt, credit, investing, taxes, and retirement planning in the Republic of Ireland. 08% and has delivered strong returns over the years. Get (and give!) advice on investment portfolios and financial planning goals for retirement (401k, Roth, IRA, HSA) and taxable investing accounts, particularly stock and bond mutual funds and ETFs - learn tips for tax efficiency and other account optimization strategies. Blackrock has good etfs. I researched bonds, TIPS, TIPS ETFs and target maturity ETFs. With the tax this brings the current yield down from about 5. After years of being overshadowed by stocks, bonds, mutual funds, ETFs, and nearly every other place to put your money, Series I savings bonds issued by the US Treasury have caught the attention of the media, savers, and investors as their yields have risen to match—or exceed Choose funds based on your allocation. TIPS are just for people who want bonds but are concerned about inflation, they are not really comparable to VTI or even BND. May 9, 2024 · 6 Top-Performing TIPS Funds. I've been considering 66 VOO, 18 SCHD, 8 VGT 8 SCHG. e. If you are looking for investing in Bitcoin, this is one of the 11 ETFs recently approved. Ongoing management fees for ETFs (basically the amount of the ETFs assets that go to the company that actually manages the ETF) is generally very low, a fraction of a percent/year. If deflation occurs, the interest payment decreases. The point of a bond ETF vs. The more successful companies grow in the ETF and the dogs fade. You may need to consider the fee/expense ratio and performance of them. Despite similarities, there is discount/premium difference among them. Since US TIPS returns are based on inflation and they never produce a negative return, how is that possible that this ETF was down 6% between march 2022 - april 2022? To my understanding the least return possible yearly on that ETF should be around 1% (as the ETF fee is around 0. Treasury Inflation-Protected Securities (TIPS). Think of Bond ETFs as stock ETFs. In that time, inflation became more of a measurable thing, feds began raising interest rates, and returns on bonds began to go up. However, in both markets the price of a TIPS is determined by investors via supply/demand. VXUS is simply a great cheap efficient way for tracking international or Ex-US returns. I am a lowly old retail investor and can't buy directly, and dont want to be locked up for at least years. The next two are great for growth & technology exposure, Nasdaq 100 & big tech. TIPS ETF): 5% Being 30, I have only contributed to 401ks so far, and looking to start a fund I can add to monthly/weekly. 05% I guess. I have some extra cash laying around ($10K) and have been looking into buying some ETFs or index funds. If you have an investment horizon of 20 years, you could bet everything on bonds that mature in 20 years, but if rates rise next year, you'll miss out on higher returns. TIPs funds will give you inflation protection even if Treasury yields are rising faster than inflation, because in the long run they even out. Conservatively estimating 1% risk premium with a . Welcome on /r/stocks! Don't hesitate to tell us about a ticker we should know about, market news or financial education. You still need to research the ETF, and only buy the good long term ones. If you plan on trading it, then if real yields go up (i. The absolute bottom of the 2008 crisis was the week of March 6, 2009, when the S&P 500 hit 683. Check them out. Jan 30, 2025 · The ACF Yield is the discount rate that equates the ETF's aggregate cash flows (i. I wouldn't put everything into the TIPs, but it seems quite reasonable to put some of it into the TIPS ETF if that gives you good yield. Oct 4, 2023 · On Sept. owning an ETF, but that's not what I came here to ask. VBTLX meanwhile is nominal, not real return. They are a basket. Not the other way around. 40 Years ago Japan was by far the biggest economy and more important than the USA. most Bond ETFs don't give much growth at all, so I am just focusing on the Yield I would take a look at Quality Factor etfs. The most popular ETFs are ones that track the S&P500 which are the 500 biggest companies in the US. That's what is relevant. Posted by u/Sockgangmember123 - 3,100 votes and 3,267 comments Feb 26, 2021 · Schwab U. suppose you buy a 5 year bond that pays 3% a year, and at the end of the period you get your principle amount back. Ignoring counterparty (assuming no defaults), liquidity (assumin In contrast, TIPS ETFs are rather straightforward (I can purchase them through my Ally Invest account, and then sell them whenever). S. Now for TIPS etfs. I also have some allocated to various dividend pharma stocks. That difference is premium paid by investors who want "market insurance" and is how real insurance companies make money as well. The conclusion was that in some circumstances the ETF can even be negatively correlated to the TIPS in terms of returns but tbh I didn't catch why. In both cases I think it’s useful to distinguish expected and unexpected inflation. Even as inflation reached the peak in July 2023, TIPS bond ETFs, like LTPZ, were basically crashing in line with other treasury ETFs because despite higher inflation, the expectation was that the Fed will have to reign in inflation through positive real interest rates, a total flip from a negative real interest rate when inflation was Just to put your mind at ease a bit Tips in general have out performed US bond market, but they also do have a bit more volatility. What is the downside to an ETF like TIP, which seems to keep up with inflation?It also pays dividends. 04% so it seems worth the cost to not have to manage all the TIPS i would need to purchase. Not sure I fully understand those. Instead of timing the bond market with an ETF like TLT I can buy a REIT etf and if interest rates go down REITS will perform. Dec 30, 2021 · I'm looking at some of the TIPS ETFs and while they don't appreciate much, they pay a dividend around 4. with an ETF there's a 2 day turnaround to get cash after you sell the ETF. They tend to do better than S&P500 during bad times. My opinion is, you aren't investing overly large amounts, so personally I would stick to an "all in one" ETF (VDHG or DHHF) to save yourself three lots of brokerage (your target portfolio would cost you $50 in brokerage fees, assuming you have a CDIA). But please, read the sidebar rules before you post. the 'face value' of a bond can fluctuate for a variety of reasons. But quality etfs are very Sure, sounds like bond ETFs might be useful, but it doesn't sound like they're fulfilling the purpose of bonds at all. By your There are many etfs that invest in areas that you're interested in, a few are: EEM: emerging markets focused, but keep in mind that emerging markets these days are typically tech companies from china, taiwan, and korea (why taiwan and korea are still considered emerging markets is a good question) It isn't easy to find but if you click on one of the individual funds and then go to holdings and then detailed holdings link you get a file with the bond holdings and yields. 4. The TIPS iBonds ETF roster consists of 10 funds that invest in U. 05% annually, and covers the entire range of TIPS maturities. Both TIPS and I-bonds consist of a base rate and an inflation-adjusted rate. If inflation occurs, the interest payment increases. Another example: You buy VTI because the USA is the biggest economy of the world and outperformed many (but not all). 5%. IVOL was one of the “hot” funds for a lot of institutional managers this past year for fixed income. Fantastic site, I use it a lot when deciding which ETF to hold. I'm looking at some of the TIPS ETFs and while they don't appreciate much, they pay a dividend around 4. The idea here is that the real volatility we see will be less than what is expected by the market. The composition is 30 year TIPS plus 'TIP swaps' that I don't understand. com. ). 5% (real) and 0. They really work best when combined with those funds to provide inflation protection. This is a great place for beginner and advanced investors to share knowledge! Get (and give!) advice on investment portfolios and financial planning goals for retirement (401k, Roth, IRA, HSA) and taxable investing accounts, particularly stock and bond mutual funds and ETFs - learn tips for tax efficiency and other account optimization strategies. View community ranking In the Top 1% of largest communities on Reddit. Plenty of sites such at ETF. Examples are STIP (average duration 2. 38. They have low leverage and stable cashflows. The mothership. Yea your math makes sense. My core portfolio is VTI and I add on whatever I want more weight in. com, ETftrends. Find the latest iShares TIPS Bond ETF (TIP) stock quote, history, news and other vital information to help you with your stock trading and investing. So far it's doing well for me. One consideration is that a TIPS fund can fluctuate significantly in value, which can be inconvenient if you need to withdraw the money during a downswing. For TIPS, you run the risk of either rate going into the negatives. Other topics that affects European ETF's are also welcomed, for instance: World Markets, EU's ETF taxes, etc. Treasury Inflation-Protected Securities (TIPS) 0-5 Years Index. The bonds are supposed to be the safe place to store your money, in nominal terms. Or is a mutual fund like VTAPX better for some reason? These ETFs operate differently, IVOL takes the yield curve into account as well as CPI. If you want an all-equity portfolio XEQT or VEQT is your best bet. Primarily focused on student debt and using btc in the taxable to pay that off this I've read somewhere an articulated explaination that unfortunately I can't find anymore about the different risk/opportunities coming from buying an ETF based on Tips rather than buying Tips directly. But not for your ETF. I don’t own TIPS and would take SCHP if I did. you can see schp vs bnd here historically while only ten year or so there is some history to see how it has reacted throughout the years. Assuming you mean mutual funds vs ETFs: ETFs trade in real time during market hours like stocks. Owning a TIPs fund dampens that a lot since they will own TIPs with a broad range of issue dates and maturities. Members Online Most Americans tip 15% or less at a restaurant — and some tip nothing, poll finds The ten year gain is 1. So with the UK and the rest of the world's inflation rising is now the time to buy these Inflation-index-linked bonds Ishares $ TIPS UCITS ETF - AS one example Yes, you can lose principal in VTIP. the point of an EF is liquidity and stablility, not to maximize gains or dividends. ARKK innovation Active ETF. ARK Funds other ACTIVE ETFs of ARKF, ARKG, ARKQ, ARKW. I have 20% of my portfolio devoted to bonds, evenly split into 10% TIPS and 10% regular bonds. Join our community and get on top of your finances! Recently migrated my Roth IRA over to Schwab from Edward Jones and was able to max out my 2023 Roth contributions. They don't stay at their current price. The risk premium for factor appears to be something in the range of 1-4%, but some of that has likely disappeared. Etfs have an average maturity which reflects your average expected return. Then apply those concepts to the Etf structure, then define your objectives and finally invest the money. I suggest you start understanding the concepts of maturity, yield to maturity, duration, mark to market. At this point if my settlement fund is yielding 3. - Interest rate risk: Same as TIPS. Firms like Schwab and Fidelity have ETF robo platforms that can invest systematically for you based on your investment profile. Treasury Inflation-Protected Securities Jan 26, 2024 · TIPS ETFs are constructed by buying and holding a basket of TIPS tracking a specific TIPS index, as with the Bloomberg Barclays U. Its not really fair to compare a 100% stock ETF to a 100% bond ETF, they serve entirely different purposes. 19% Inflation-Protected Bond VEA Vanguard FTSE Developed Markets Index Fund ETF Shares (VEA) 0. TIPS ETFs will "keep up" with inflation, but real return is next to zero. The cash flows are based on the yield to worst methodology in which a bond's cash flows are assumed to occur at the call date (if applicable) or maturity, whichever results in the lowest even a broadly diversified stock ETF lost about 50% of its value peak to trough during the 2008 crisis, and other crashes like it. For example, my TIPS investment lost ~10% of its value during a 6-month period in 2013. Plenty of resources out there to expand your financial knowledge of ETFs. Note that they are not protected against loss of principal (particularly in deflationary conditions), and may not keep up with inflation as well as I bonds. ETFs don't really have many downsides. TIPS ETF (SCHP) Like many ETFs in the Schwab lineup, SCHP is the cheapest in this space, charging just 0. This ETF tracks the Morningstar Dividend Yield Focus Index. Remember, long-term. Community mainly focused on discussion, search and learning about Exchange Traded Funds (ETF) listed on European Stock Markets. Each ETF issuer’s website has a ton great information about their product suite. 75% really no need to go chasing a tbill etf for maybe another . Jan 28, 2025 · The iShares® iBonds® Ladder ETFs will hold 5 iBonds ETFs (the “Underlying Funds”), spanning 5 consecutive maturity years. But it's unlikely to be significant. Just figure out what you want for real/nominal return ratio (I target 50/50 personally for inflation and deflation protection). a single stock: to diversify. 6 days ago · To be included in MSCI ESG Fund Ratings, 65% (or 50% for bond funds and money market funds) of the fund’s gross weight must come from securities with ESG coverage by MSCI ESG Research (certain cash positions and other asset types deemed not relevant for ESG analysis by MSCI are removed prior to calculating a fund’s gross weight; the absolute values of short positions are included but One of the best income ETFs with high return to expense ratios is the iShares Core High Dividend ETF (HDV). MAGS seem safer than those 3x leveraged ETFsthe fee is super low also. Clean Energy ETFs, QCLN, ICLN, PBW, PBD, TAN, FAN Video game and eSports ETFs, ESPO and HERO Cloud computing, CLOU, SKY. The shorter the average bond maturity of an ETF, the less impacted it is when interest rates change, but also it usually has lower yield. Investors could use these funds to construct a 10-year TIPS ladder without the They cannot be shared and they cannot be traded so there would be no way to mutualize the ownership for an ETF. Does it Putting money into an ETF monthly on a fixed schedule is probably the best solution for at least 95% of people. I recently bought some SGOV thinking that the 15% withholding tax did not apply to interest payments on bond etfs. SCHP, for example, had a fast and relatively mild dip in March 2020 and subsequent fast recovery. In all of history, people investing (and holding for 20 years) an All-World or SP500 ETF, have ALWAYS made a profit. I had recently started to believe that buying ETFs of bonds is better than buying individual bonds, based on several articles posted here, but between buying a TIPs ETF or TIPs at auction, I'm at a loss. I dont even know what youre saying tbh. It has a P/E ratio of about 18. g. For example I'm bullish on commodities for macro reasons and so 20% of my portfolio is split up among ETFs related to that(LIT, COPX, GLTR, etc. The covered calls etf have high fees and less growth than what they hold just because of the mechanism of covered calls. This is a great place for beginner and advanced investors to share knowledge! In some retirement accounts you can only buy ETFs (and not the common stocks)so it's a good alternative. ETFs trade person to person typically, not between the fund issuer and person like mutual funds. The second is what TIPS protects you from. TIPS yield to maturity demanded by market goes up), then the price on your TIPS goes down which can cause worse short term performance than the yield to maturity would promise. I know there are varying opinions about directly owning TIPS vs. the yield on VTIP is around 6%. TIPS Index ETF). From tips for running a business, to pitfalls to avoid, /r/business teaches you the smart moves and helps you dodge the foolish. TIPS ETF is still a bond fund and is therefore subject to interest rate risks. I-bonds are more like a savings account. The Underlying Index is reconstituted each June such that the iBonds ETF with the nearest maturity is removed from the Underlying Index and the iBonds ETF with a five-year maturity is added. What you can notice is: It has become a price war. Sit on hands and reevaluate mid next year at longer maturities like you just did. Checkout Invesco's SPHQ. Mainly want to get a good basse of FBTC first but once my income goes up I'll be upping the ETF contributions. At your age, just go with a two fund portfolio, a S&P500 fund and a money market/ultra short treasury. 1%), as this is return rate that TIPS have in case of negative or I'm looking for TIPS index fund mutual or ETF to add to my portfolio (IRA/401k) I know I could buy directly TIPS from treasury but is there similar low cost index fund for Fidelity? TD;LR I'm looking for inflation protected as safe as cash index fund as possible. TIPS trade both on the primary and secondary market. 03% Buy the ETF's for your portfolio and plan on holding onto them for the long term. Does anyone here hold short-term US treasury etfs despite the withholding tax? It seems like short-term Canadian treasury etfs like CBIL also return about 4. I also included a broad based treasury ETF in the pic (orange line) with a 2 year duration that looks flat, so I am still stumped here! Also think about using a TIPS ETF with low expense ratio. As You can see in the pic, the large 0-5 year TIPS ETFs with average duration ~2 years fell dramatically this morning and I can't seem to find any information/ news that would drive this decline. By your There are many etfs that invest in areas that you're interested in, a few are: EEM: emerging markets focused, but keep in mind that emerging markets these days are typically tech companies from china, taiwan, and korea (why taiwan and korea are still considered emerging markets is a good question) TIPS ETF with a maturity date I have recently been looking for a way to "protect" my funds from inflation. Side note why doesn't SCHD hold Reits? I know VOO has some Reits in it (Which I DCA into my 3 fund port every month ) I don't want too much overlap but according to the data VOO/VNQ overlap is only 2% An ETF usually holds more newer bonds than those closer to maturity, as it has to cycle them when people are selling and buying the ETF. 2% (nominal), so the m And the rest of it should be in other short term investments or cash equivalents (CDs, money market, treasuries/TIPs, all depending on what gets you some reasonable yield). Nov 12, 2024 · I have also considered adding a long term TIPS ETF to increase my average weighted maturity to closer to 14-15 years and then decrease that over time as part of my RMDs in 5 years. Figure out your asset allocation and buy into that. especially with a market weighted ETF. TIPS are Treasury Inflation-Protected Securities, they are issued by the US government and indexed to inflation. 95%. 8y). BND, VTEB, etc. IVOL is ~1% management fee (quite high) and seems to be basically a "bond fund" that you want to avoid, it seems to issue monthly dividends which are classified as income so probably not what you want. Jun 8, 2023 · When inflation awoke from its 40-year nap last year, it pushed a little-known financial product into the spotlight. Long Term Treasuries: - Tax inefficient - Inflation Risk: If inflation is higher than expected, there will be loss. Other then the no-expense ratio, is there any advantage to building a TIPS ladder over just throwing the money into a TIPS ETF like VTIP? VTIP is on 0. TIP (iShares TIPS Bond ETF) or SCHP (Schwab U. Investors seeking short-term TIPS, with less interest rate risk, can use the Vanguard Short-Term Inflation-Protected Securities ETF (VTIP). Assume you meant 50/40/10. I'm finding a large discrepancy between Canadian listed and us listed ETF yields, even though they track the same index, or even when the Canadian ETF literally holds the US ETF. For an I-bond, both rates are guaranteed to be at least 0%. 3% to 4. ETFs I think are generally used more as ‘safer’ long term investments because your risk is spread out over potentially hundreds or thousands of stocks, but it depends on which ETF you invest in to really. Given the recent slowdown in inflation, SPIP is in a potentially favourable position. Looking back on it's history, it seems that sometimes it doesn't have payouts for some months. Why are people quibbling over a 0. , GameStop which is not a great company, or Nvidia which is a great company but the valuation is so crazy you're almost guaranteed to lose money buying at these peaks. This swap pays a periodic fixed rate on an accreting notional amount plus an additional one-time payment on maturity date. Double down on Nasdaq-100 with QQQ. TIPS usually trade at a premium to a nominal bond: this difference is the market’s inflation expectation. To identify the best TIPS bond funds, we first eliminated funds with less than $100 million in assets and those without at least a Bronze Medalist Rating. DIFFERENCE US-LISTED AND CAD-LISTED BETWEEN ETF YIELDS. I would say, by far, the number one difference between I Bonds and an TIPS ETF is that, with the TIPS ETF, if inflation over the next 12-18 months comes in lower than what is currently priced in, the value of the ETF will go down (i. No excessive redundancy really - I Bonds are like TIPS, but better (right now at least), so I'd make TIPS second priority on the inflation-protected side. I'm assuming this sub is mostly US-based, but there are probably some people that can help. This makes it extremely easy to diversify across industries, company sizes, and even entire countries. However, TIPS ETFs don't seem to have locked in rates like I-bonds (though their prior year's performance suggests they are fairly stable). 3% fee. 5% and appear to have excellent downside protection. 70% IWDA: iShares Core MSCI World UCITS ETF USD (Acc) 10% EIMI: iShares Core MSCI Emerging Markets IMI UCITS ETF (Acc) 10% SXR8: iShares Core S&P 500 UCITS ETF (Acc) 10% BTC (I already own €20,000 worth) Additionally: Maintain around €50,000 in a High-Yield Savings Account (HYSA) and reinvest in ETFs at the end of each year. Is the risk of serious deflation an issue? I was thinking about moving my savings account (emergency fund) at Schwab which currently pays . Say you entered a position on a long-term bond etf like EDV (a basket of long duration US gov't bonds) in January of 2022. a single bond is analogous to that of a stock ETF vs. I don't have a list of ETF pros (I personally very strongly favor mutual funds), here's the cons list (some may be a bit out of date and need updating SPY, VTI, QQQ, XLK, VXUS, XLRE & LQD are all solid ETFs. Don't panic sell when the market tanks just keep buying more and watch it recover. Most people would argue for global diversification. It makes managing this easier than going through Treasury Direct or buying the bonds through your broker. The fund seeks to track the Barclays Capital U. 5y) or SCHP (average duration 6. Personally I use schwab for US ETF holdings (SCHX), iShares for international (boosts my exposure to S Korea and reduces it to Japan VS what I'd get with Schwab without paying a high fee for a separate Korea fund) and Vanguard for small cap value My current acorns portfolio is like 35% ETFs and 65% bonds. Only put into stocks/ETFs the money you do not need for the next 10 years. That’s the only reason it’s possible to get that high a guaranteed return - more than double market rates - even for a limited time. The first two are great for tracking average market returns, S&P 500 & total market. As an official Fidelity customer care channel, our community is the best way to get help on Reddit with your questions about investing with Fidelity – directly from Fidelity Associates. Might do 50 VOO and split the rest. TIPS ETFs / funds are immediately liquid. lolmargin interest in brokerage accounts are like 7 to - Interest Rate Risk: When real yields go up, TIPS value will go down aka recent losses on TIPS although unexpected high inflation; this makes TIPS a bad choice for short term savings. stock price going up doesn't always equate with success for a company. . it's negligible or just buy it short term and trade it in and out. If you want to pick your global allocation, look at these: TIPS are not guaranteed to break even with inflation. Thoughts? Let me know if my theory is completly bogus or any other tips you have of when to enter the market. You can also look at a general tips vs us bond market here. You're gonna see an eternal debate about these. e. Or is a mutual fund like VTAPX better for some reason? I dont even know what youre saying tbh. I’ll have to look more into TIPs ETFs. The only one I am aware of is LTPZ (PIMCO 15+ Year U. For years now, I've owned the TIPS via two ETFs, TIP and VTIP. Hard assets especially commodity sectors like XLB and XLE could actually benefit, as a weaker dollar boosts these companies' sales. I would also be continuing daily contribution to an ETF portfolio as well to reduce risk and low avg cost. BUT you can always wait it out and get the yield to maturity. Our goal is to help Redditors get answers to questions about Fidelity products and services, money movement, transfers, trading and more. you will lose principal). suppose the same issuer sells bonds that pay 4% for 5 years, rather For starters, you really don't need both QQQM and VOO, as there is considerable overlap, pick one or the other. Ishares TIPS bond etf . 05% Foreign Large Blend VTI Vanguard Total Stock Market Index Fund ETF Shares (VTI) 0. 21, iShares launched the industry’s first TIPS defined-maturity bond ETFs. When a TIPS matures, investors are paid the adjusted principal or original principal, whichever is greater. To lose 10% over a year or so in that fund would essentially mean something happens that brings inflation way down and real interest rates way up. TIPS pay interest at a fixed rate, but because the rate is applied to the adjusted principal, the amount of interest may vary over time. What you should also note: iShares TIPS Bond ETF (TIP) 0. bonds are traded every day, like stocks. 25 excess expense ratio, means it's good to hold some if you are in your 20s or 30s and plan to hold for 25+ years. 25% to a separate brokerage account completely invested in TIP (or SCHP). TIPS is the general name for Treasury Inflation Protected Securities, but TIP is one of the ETF names for the product I traditionally haven't really like inflation-protected products but there's a few portfolios that allocate to them on a permanent basis My ETF Watchlist has the following recent high return ETF theme investments. Jul 17, 2023 · Below are the 3 best TIPS ETFs, sorted by shortest to longest maturity. I already have a small mix of VTI, VNQ, SCHD, and VXUS -- but I might adjust based on (who would have thought) AI's recommendations. TIPS ladder vs ETF (VTIP) Other then the no-expense ratio, is there any advantage to building a TIPS ladder over just throwing the money into a TIPS ETF like VTIP? VTIP is on 0. I bought some more VTIP shares recently just because the yield was decent, and better than many other ETF bond funds right now. Treasury Inflation-Protected Securities Index. The SPDR Portfolio TIPS ETF (SPIP) is an exchange-traded-fund that provides investment exposure to U. , the sum of the cash flows of the ETF's holdings) to a given ETF price. They only perform better in a flat or slightly rising market. So good risk aversion there, but I’m willing to take a bit more and would be fine with downturns. I feel like a TIPS ETF that has a maturity date would be best, as it allows fractional shares, tracks inflation, allows for small investments and is safe from price fluctuations since TIPS are purchased on the secondary market The secondary market is where something is sold for the second (or higher) time. For example, if you compare VTIP and VGSH, the 30-day SEC yields are -2. SCHP, a TIPS ETF, paid dividends twice in Dec 2022 and nothing in Jan 2023 and so far nothing in Feb 2023. Why buy something that's yielding 2% when I can buy something yielding 6%? TIPS ETF with a maturity date I have recently been looking for a way to "protect" my funds from inflation. HDV has a relatively low expense ratio of 0. You're thinking of I-bonds. Disclaimer: I don't own any myself - I just dollar cost average into VOO and some other ETFs during good times and bad. How does an ETF that holds TIPS work? If i bought TIPS directly they come in 5,10,and 30 year maturity dates. If interest rate goes up, a bond's secondary market value goes down, amplified by how long it is to maturity (for a bond fund, look at its effective duration). gndrs ckqe ubr gbbna ijxm ztlhwv ohzmtcjr ppxgmy ovdx tngr gpkjbsd njklng uzmv lxe hfxie