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SPDR Bloomberg Barclays TIPS ETF
Ticker Symbol: IPE
Family: State Street Global Advisors SPDRs
Exchange: NYSE ARCA
Brief: IPE seeks to provide investment results that corresponds to the price and yield performance of the Bloomberg Barclays U.S. Government Inflation-Linked Bond Index, by providing exposure to U.S. Treasury Inflation Protected securities (TIPS), designed to provide inflation protection and hedge against rising prices/falling purchasing power because of inflation.
Objective: IPE intends to provide investors a hedge against inflation, in other words, as prices rise, the purchasing power of your dollar falls. IPE seeks to achieve price gains as inflation rises to help offset the lost purchasing power.
Similar ETFs to research:
Vanguard Short Term Inflation Protected Securities ETF (VTIP)
iShares TIPS Bond ETF (TIP)
Schwab US Tips ETF (SCHP)
Where it may fit in a portfolio: TIPS ETFs are generally play a role in a conservatively allocated portfolio in the fixed income/bond space, but TIPS ETFs are not used for income generation. TIPS ETFs are a good choice for inflation protection, but not for income generation as a traditional long-term corporate, government or municipal bond would be. The actual percentage allocation depends on your objective, but generally, an investor will limit TIPS to an overall allocation of no more than 10-20%. Again, this is just a general range, but only individual objectives should determine any asset’s weighting in a portfolio.
May appeal to: Any investor who believes that inflation is on the rise, which will cause purchasing power to fall.
SPDR Bloomberg Barclays TIPs ETF is a Silver Medalist ETF, rated 4 stars by Morningstar, January 2019.
Full description from Distributor, Risk and Return stats, click here!