As I see it (based on applicable vanguard funds):
* ST TIPS are doing better (less bad) than short term treasuries this year
* Federal Money Market doing better than ST TIPS this year
* All nowhere near keeping up with inflation
* For the past 5 years, ST TIPS wins.
Over 100% higher return than it's nearest competitor, Money Market.
Future mileage may vary
Related Vanguard funds; through 9/30/2022 and then 5yr, per https://investor.vanguard.com/investmen ... ney_market:
Federal Money Market (VMFXX): 0.67% ; 2.77% Yield ; 5yr: 1.06%
ST TIPS (VTAPX) : -4.00% ; 1.56% Yield* ; 5Yr: 2.30%
(2.6 year duration ; Yield doesn't include inflation adjustment)
ST Treasury (VFIRX): -5.12% ; 3.68% Yield ; 5yr: 0.53%
(2.2 year duration)
I-Bonds: 9.62% Yield
And for perspective:
Long Term Treasury (VUSUX) -28.64%; 3.66% Yield (inverted!); 5yr: -1.54%
(16.8 year duration)
TBM (VBTLX) -14.59% ; 3.83% Yield; 5yr: -0.26%
If inflation remains higher than 2.12%, ST TIPS should do better than nominals
TIPS
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- vnatale
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Re: TIPS
1. Exhibit A of how disconnected the actual can turn out to be from what "the bond market is expecting"
2. Love that saying! Original to you?
Above provided by: Vinny, who always says: "I only regret that I have but one lap to give to my cats." AND "I'm a more-is-more person."
- vnatale
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Re: TIPS
I assume that you were being facetious?
Just over a year later mortgage rates are now around 7% and experiencing one of the fastest increases ever.
Above provided by: Vinny, who always says: "I only regret that I have but one lap to give to my cats." AND "I'm a more-is-more person."
- vnatale
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Re: TIPS
As I am today reading posts in Topics revolving around TIPS that message has continually been coming through loud and clear!
Above provided by: Vinny, who always says: "I only regret that I have but one lap to give to my cats." AND "I'm a more-is-more person."