Vanguard Short-Term Inflation-Protected Securities ETF

VTIP tracks an index of US Treasury Inflation-Protected Securities (TIPS) with less than 5 years remaining to maturity.

VTIP ETF has returned 6.2% annualized since June 2023, outperforming cash due to the fall in real yields seen over this period. The ETF holds Treasury Inflation Protected Securities with an average maturity of 2.5 years, which have an average yield to maturity of 2.3%. Rising inflation pressures since the Fed's rate cut suggest VTIP will continue to outperform cash and bonds as inflation expectations recover.

VTIP: Well Placed As Fed Easing Risks Reigniting Inflation

The expectation of falling interest rates may seem like the current market may not be conducive to using Treasury inflation-protected securities. However, it's ideal to maintain constant exposure to TIPS.

Maintain Constant TIPS Exposure With This ETF

Vanguard Short-Term Inflation-Protected Securities ETF VTIP is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 3.53% from its 52-week low price of $46.70/share.

TIPS ETF (VTIP) Hits New 52-Week High

The Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) provides investors with a way to mitigate inflation risks while maintaining a short-term investment horizon. VTIP primarily consists of short-term U.S. Treasury Inflation-Protected Securities, offering a direct hedge against inflation for bond holders. Compared to similar ETFs, VTIP outperforms due to its focus on short-term maturities and lower duration, reducing exposure to interest rate risk.

VTIP: Simple, Straightforward Inflation Hedge

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Concerns about inflation are top of mind again, with consumer prices and producer prices rising higher last week. This impacted the bond market as well as commodity prices.

Renewed Focus on Inflation

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With prices, valuations, and inflation elevated, some investors are looking for comparatively safe, high-quality investments. T-bills, short-term TIPs, and AAA-rated CLOs are three of the best investments in this area. There are fantastic ETFs covering each of these securities.

3 ETFs For Short-Term Risk-Averse Investors

VTIP has a straightforward structure, investing in TIPS with short durations, yet it shows good efficiency compared to its peers. The drivers of VTIP are interest rates, duration, and inflation, making it an attractive investment only in anticipation of rising inflation when interest rates are low. As of now, I do not expect a new peak in inflation, so, at the moment, there are much more profitable dividend investments.

VTIP: The Best ETF In The Category, But Not The Right Time To Invest

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Hello! This is MarketWatch reporter Isabel Wang bringing you this week's ETF Wrap. In this week's edition, we look at ETF strategies that have exploded in popularity in 2023, and whether they will continue to gain momentum in the year ahead.

These ETF strategies were big winners in 2023. Here's where one CFRA analyst sees them going next year.

PIMCO 15+ Year US TIPS ETF

SPDR Portfolio TIPS ETF

Investors looking to adjust their allocations may want to add Treasury Inflation-Protected Securities, or TIPS, to their fixed income portfolio. At least since the CPI notched a 9% year-over-year increase in the summer of 2022, inflation has been back on investors' minds.

Worried About Inflation? Consider TIPS ETFs

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Past performance is not indicative of future results. Yet many people seem comfortable with a portfolio for 2024 that looks a lot like 2023.

Positioning Your Portfolio for a New Market Cycle

Treasury Inflation Protection Securities pay a real interest rate and have semi-annual adjustments to the principal based on the Consumer Price Index. Vanguard Short-Term Inflation-Protected Securities ETF aims to track the performance of TIPS maturing in under 5 years. We analyze the setup and tell you why we think this deserves a position in your portfolio.

VTIP: Real Yields Rise From The ZIRP Ashes

While Treasury inflation-protected securities (TIPS) may seem complex and daunting, it's important to dive into their intricacies. After all, their current yields present an enticing opportunity and a compelling alternative to conventional Treasury bonds.

Diving Into the Intricacies of TIPS

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During the recent times of record high inflation (2021-2022), a few things have changed to dislocate markets from where they stood before the COVID-19 pandemic. However, this is not your grandfather's post-crisis rally; the next period could be what some economists call 'the lost decade.

Get A Grip On Inflation With These Two Bond ETFs

The Vanguard Short-Term Inflation-Protected Securities ETF invests in short-duration TIPS bonds. Although VTIP pays an attractive 5.1% yield, the ETF has underperformed CPI inflation since its inception. Investors interested in true inflation protection should consider constructing a ladder of individual TIPS bonds matched against their specific maturity needs.

VTIP: Losing To Inflation In The Long Run

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Vanguard Growth ETF

Inflation above 2% has a negative impact on stock prices; the Vanguard Total Stock Market ETF has averaged poor performance during such years. Various sub-sectors of the stock market and sectors of the bond market are affected differently by high inflation. My data shows that energy, utilities, and gold stocks tend to perform well during periods of high inflation, while value category funds outperform growth category funds.

With Inflation Still High, These ETFs Will Likely Disappoint This Year

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Over the past year, inflation has become a pressing concern for many Americans. There has been a spike in everything from mortgage and interest rates on vehicles to everyday prices of consumer goods and food.

These ETFs Could Be a Hedge Against Another Rate Hike and Inflation

More hawkish central banks around the globe could be applying downward pressure on bonds. If that's indeed the case, getting inflation-protected assets is a must in the current market environment.

Consider This Short-Term Bond ETF Amid Stubborn Inflation

The Vanguard Short-Term Inflation-Protected Securities Fund, VTIP, is a low-risk asset with a high dividend yield, making it an attractive investment in the current market environment. VTIP's value is expected to rise if the yield curve begins to re-steepen, and it offers protection against inflation due to its link to the consumer price index. Despite potential downside risks, such as a decline in crude oil prices or a rise in real interest rates, VTIP is likely to deliver a solid total return over the next twelve months.

VTIP: Inflation-Indexed Bonds Have Never Been More Attractive

An overabundance of optimism surrounding the U.S. Federal Reserve's rate pause could be creating hubris among bond investors. That said, it could be necessary to brace for more rate hikes with the Vanguard Short-Term Inflation-Protected Securities Index Fund ETF Shares (VTIP).

Too Much Optimism Warrants a Look at This Bond ETF

The real yield on the Vanguard Short-Term Inflation-Protected Securities Index Fund ETF has risen to a new high of 2.6%. This real yield is significantly above its historical average and compares favorably even with much riskier assets. A huge Federal Reserve policy error would be required to cause negative returns on the VTIP ETF over the coming years.

VTIP: 2.6% Real Yield Is Exceptional Given The Alternatives

Economists expect that the May reading of the Consumer Price Index (CPI), due out on June 13, will show a 4.2% year-over-year increase. That's far better than the 8.6% surge seen in May 2022 and an improvement from the 4.9% increase reported in April.

CPI Might Soften, but TIPS ETFs Still Hold Allure

One of the great mysteries that emerged from the bond market's 2022 turbulence was the laggard status of Treasury Inflation-Protected Securities (TIPS). Investors can investigate inflation protection with these options.

Inflation Protection With VTIP

Inflation continues to go down, reaching 5.0% in March. As inflation goes down so does the yield and expected returns of TIPs.

A Close Look At Short-Term TIPs As Inflation Continues To Go Down

As the Federal Reserve continues to wrestle with inflation, high-quality bonds still present investors with a prime option given the economic uncertainty that looms. It's been a comeback year for bonds after taking a bearish turn amid rising interest rates in 2022.

High-Quality Bonds Still Present Best Opportunity for Investors

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These stocks and ETFs are some of the best inflation-proof investments and could continue to shine as price growth cools.

News for Vanguard Short-Term Inflation-Protected Securities ETF ETF (VTIP)