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iShares TIPS Bond Message Board

  • markm0722 markm0722 Jan 21, 2011 11:26 AM Flag

    TIP's Typical Price

    I just ran the numbers through Excel.

    Average: $103.27
    Median: $103.35

    Keep in mind that the interest and inflationary gains are paid out in distributions. TIP's price should therefore hover around some sort of average.

    I'm of the belief that real yields will generally be low in the future so I think TIP could support an average price somewhat above its typical price long-term.

    I certainly think the real yield on the 30-Year TIPS is fair. What's not to like about locking in 2% long-term?

    That said, I'm no fan of earning negative real interest on the 5-tear TIPS. This fund does have exposure to that as well.

    Just opinions of course.

116.03+0.20(+0.17%)Jul 26 4:00 PMEDT