Just went ex-div today.Solid holding if you ask me.
This morning after the unenjoyment report was a good example of the inverse relationship between the US dollar (falling after report) and TIPs (at least the govt. bonds themselves rising.http://www.bloomberg.com/markets/rates-bonds/government-bonds/us/See section on inflation indexed treasuries.http://www.bloomberg.com/quote/DXY:INDNot that it is a BIG DEAL but is illustrative.
http://finance.yahoo.com/q/bc?t=my&s=TIP&l=on&z=l&q=l&c=&c=%5EDJIDJIA and TIP--note the Dow has much wider swings, but direction tends to be similar.So in TIP you getting an erzatz equity "fund", where the government determines your inflation rate based on their machinations and hedonics. http://www.quora.com/Consumer-Price-Index/How-is-hedonic-adjustment-used-to-distort-the-US-government-CPI-figures
Solid holding if you ask me. <<Amendment to your constitution: When the US dollar is weak or falling. :)Of course I can't predict the future, but yesterday was a lesson in what this fund does when the US dollar is strong. (maybe for a day, who knows??)
Tips seem to go either way.when the US dollar is strong
But, it is US dollars