TIPS Auction Step By Step: Read the Results
[An updated version of this article appears in my new web site Explore Bonds, together with many other articles on investing in bonds.]
This is the fourth installment in my TIPS auction series. The previous posts in this series were:
- TIPS Auction Step By Step: Know the Schedule
- TIPS Auction Step By Step: Read the Announcement
- TIPS Auction Step By Step: Place Order
TIPS Auction Step By Step: Place Order
[Updated on July 11, 2008: added related posts in the series.]
This is part three of the TIPS auctions series. Other posts in this series are:
- TIPS Auction Step By Step: Know the Schedule
- TIPS Auction Step By Step: Read the Announcement
- TIPS Auction Step By Step: Read the Results
If you are interested in TIPS but you don't want to be bothered with auctions, you can buy TIPS in a mutual fund or ETF. See Individual TIPS Or TIPS Mutual Fund.
TIPS Auction Step By Step: Read the Announcement
[Updated on July 11, 2008: added related posts in the series.]
This is part two of the TIPS auctions series. The other posts in the series are:
- TIPS Auction Step By Step: Know the Schedule
- TIPS Auction Step By Step: Place Order
- TIPS Auction Step By Step: Read the Results
If you are interested in TIPS but you don't want to be bothered with auctions, you can buy TIPS in a mutual fund or ETF. See Individual TIPS Or TIPS Mutual Fund.
TIPS Auction Step By Step: Know the Schedule
[An updated version of this article appears in my new web site Explore Bonds, together with many other articles on investing in bonds.]
There will be two auctions for Treasury Inflation Protected Securities (TIPS) in July. I will follow these auctions in a series posts. This is the first post in this series. Other posts in the series include:
- TIPS Auction Step By Step: Read the Announcement
- TIPS Auction Step By Step: Place Order
- TIPS Auction Step By Step: Read the Results
Individual TIPS Or TIPS Mutual Fund
[An updated version of this article appears in my new web site Explore Bonds, together with many other articles on investing in bonds.]
A reader asked about TIPS mutual funds in the comments to my action plan for TIPS. Just like there are mutual funds which invest in stocks, there are mutual funds that invest in TIPS. The Vanguard Inflation-Protected Securities Fund (VIPSX) is a popular choice because of its low 0.20% expense ratio. Similar funds from Fidelity or T. Rowe Price charge double what Vanguard charges. There is also an ETF iShares Lehman U.S. Treasury Inflation Protected Securities Bond Fund (TIP), whose expense ratio is also 0.20%, but it only makes sense if you have a no-commission brokerage account like WellsTrade or Zecco because otherwise you would have to pay brokerage commission for each trade. There's another newer ETF SPDR Barclays Capital TIPS ETF (IPE) with 0.1845% expense ratio. Vanguard also filed an application with the SEC for an ETF based on its fund. It's not on the market yet.
Buying TIPS through a mutual fund (or ETF) is a good idea, because it gives you a lot of convenience for a small price. Pros for investing in a fund include:
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