After checking out TIPS in ETF form (to mixed results), I now turn to how they work if you want to buy and hold them directly. I consider them a type of “solid” cash, and compare them here to T-Bills and I Bonds. But, selecting the best of these really depends on the situation.
Cobbled together some different sources on TIPS for readers who want to follow up: a comprehensive website, a helpful YouTube channel, and then excerpts from Risk Parity classics by Shahidi, Qian, and Dalio. May follow up with some academic articles, if I can find some good ones!
Started diving into the resources about TIPS but then realized there were really two versions of TIPS: 1) those held directly, and 2) and those in index funds. This post is all about setting the stage and clarifying things before proceeding.
First post in the series on Treasury Inflation-Protected Securities (TIPS) is this "basics" article to make sure we're all on the same page. I’ve curated some good video explainers then added some Risk Parity-specific thoughts on TIPS at the end.
Poor returns, high volatility, minimal yield given the risk…why would anyone in 2022 want to include Extended Duration Bond funds in a portfolio? They are awful right now, no doubt about that, but nevertheless, extended duration bonds funds like EDV can play an important role in a RP portfolio.