October 17, 2012 at 09:27 AM EDT
Vanguard Launches Short Term TIPS ETF
Vanguard made an addition to its fixed income ETF lineup this week, rolling out a new fund that targets inflation-protected Treasuries with five years or less remaining to maturity. The new Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) will seek to replicate the performance of the Barclays U.S. 0-5 Year TIPS Index, a benchmark that includes inflation protected securities with a relatively short period of time remaining to maturity. Why Short Term TIPS? The new fund could be popular with investors looking to protect their portfolios against inflation, a growing concern after years of unprecedented injections of fresh capital into financial markets from central banks around the world. Because the principal of TIPS adjusts based on reported CPI, the interest payments made jump in lock step with inflation (at least with official inflation reported by the U.S. government). [For updates on all new ETF launches, sign up for the free ETFdb newsletter] [...] Click here to read the original article on ETFdb.com. Related Posts: Bond ETFs For Every Objective iShares Launches Short-Term TIPS Bond Fund (STIP) Best Of TIPS ETFs: Expenses, Dividends, and Returns PIMCO Launches Active TIPS ETF (ILB) The 18 Most Successful New ETFs Of 2011
Vanguard made an addition to its fixed income ETF lineup this week, rolling out a new fund that targets inflation-protected Treasuries with five years or less remaining to maturity. The new Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) will seek to replicate the performance of the Barclays U.S. 0-5 Year TIPS Index, a benchmark that includes inflation protected securities with a relatively short period of time remaining to maturity.  Why Short Term TIPS? The new fund could be popular with investors looking to protect their portfolios against inflation, a growing concern after years of unprecedented injections of fresh capital into financial markets from central banks around the world. Because the principal of TIPS adjusts based on reported CPI, the interest payments made jump in lock step with inflation (at least with official inflation reported by the U.S. government). [For updates on all new ETF launches, sign up for the free ETFdb newsletter] [...]

Click here to read the original article on ETFdb.com.

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