What You Need to Know About Treasury Inflation-Protected Securities
TIPS (Treasury inflation-protected securities) are government-issued bonds that are inflation-indexed. TIPS can thus yield higher returns as inflation rises than non-inflation-linked bonds. TIPS prices adapt to retain their real value when inflation rises. This makes them attractive to investors, especially when the economy is struggling or the threat of inflation looms. TIPS appears to be a natural choice for many investors when there is above-average uncertainty regarding inflation and market returns. Unfortunately, TIPS do not …