Vtip short term tip etf ??

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Mardoc01
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Vtip short term tip etf ??

Post by Mardoc01 » Mon Jul 16, 2018 1:09 pm

No one knows what inflation will do, but for inflation protection for my mom, ?- She's only in laddered cds, would that be a good choice. ? Also, it's value is down today, so if I buy today , I would receive more shares for the same dollar amount ? Thoughts. ? Any other ideas/suggestions appreciated.

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Ever Ready
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Re: Vtip short term tip etf ??

Post by Ever Ready » Mon Jul 16, 2018 1:29 pm

Yes, a good choice for a retiree.

If you're not experienced buying etfs, it's also available as a mutual fund:

https://investor.vanguard.com/mutual-fu ... view/vtipx
Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares (VTIPX)

Mardoc01
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Re: Vtip short term tip etf ??

Post by Mardoc01 » Mon Jul 16, 2018 2:04 pm

Ever Ready wrote:
Mon Jul 16, 2018 1:29 pm
Yes, a good choice for a retiree.

If you're not experienced buying etfs, it's also available as a mutual fund:

https://investor.vanguard.com/mutual-fu ... view/vtipx
Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares (VTIPX)
Thx. I prefer etfs. But any other ideas or opinions out there re: tips". At this time ?

SlowMovingInvestor
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Re: Vtip short term tip etf ??

Post by SlowMovingInvestor » Mon Jul 16, 2018 2:10 pm

There's also STIP, iShares 0-5 year TIP ETF

jalbert
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Re: Vtip short term tip etf ??

Post by jalbert » Mon Jul 16, 2018 2:11 pm

It’s an excellent fund, and an appropriate diversifier for a CD ladder. Ishares STIP would be the main competitor. If your mom would be making regular withdrawals from the fund, a mutual fund is preferable to an ETF since there won’t be a bid-ask spread to worry about, assuming you have commission-free trades. If not there of course would also be commissions.
Risk is not a guarantor of return.

Mardoc01
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Re: Vtip short term tip etf ??

Post by Mardoc01 » Mon Jul 16, 2018 2:21 pm

jalbert wrote:
Mon Jul 16, 2018 2:11 pm
It’s an excellent fund, and an appropriate diversifier for a CD ladder. Ishares STIP would be the main competitor. If your mom would be making regular withdrawals from the fund, a mutual fund is preferable to an ETF since there won’t be a bid-ask spread to worry about, assuming you have commission-free trades. If not there of course would also be commissions.
Thx. Jalbert! Any other recs? for a diversifyer Other than I bonds.? For mom who is 77 and very risk adverse Any other recs from anyone is greatly appreciated

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Ever Ready
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Re: Vtip short term tip etf ??

Post by Ever Ready » Mon Jul 16, 2018 2:34 pm

If your Mom is in good health, an SPIA (Single Premium Immediate Annuity https://www.bogleheads.org/wiki/Immediate_fixed_annuity) might be worth considering.

Mardoc01
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Re: Vtip short term tip etf ??

Post by Mardoc01 » Mon Jul 16, 2018 2:39 pm

Ever Ready wrote:
Mon Jul 16, 2018 2:34 pm
If your Mom is in good health, an SPIA (Single Premium Immediate Annuity https://www.bogleheads.org/wiki/Immediate_fixed_annuity) might be worth considering.
Good thought. Single premium annuity. Have been raised to fear annuities though

Mardoc01
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Re: Vtip short term tip etf ??

Post by Mardoc01 » Mon Jul 16, 2018 2:44 pm

Our broker. Bbt. Also, doesn't trade vanguard mutual funds. Any other mutual funds out there on "open" market that deals with short term tips ? If we don't want commission ?

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Ever Ready
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Re: Vtip short term tip etf ??

Post by Ever Ready » Mon Jul 16, 2018 2:55 pm

Individual TIPS can be purchased through Treasury Direct or through many brokers.

jalbert
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Re: Vtip short term tip etf ??

Post by jalbert » Mon Jul 16, 2018 6:56 pm

Mardoc01 wrote:
Mon Jul 16, 2018 2:44 pm
Our broker. Bbt. Also, doesn't trade vanguard mutual funds. Any other mutual funds out there on "open" market that deals with short term tips ? If we don't want commission ?
Most are not competitive on ER. Fidelity may have a low cost TIPS index mutual fund. If it is not practical to open an account with a mutual fund provider directly, you can just use ETFs. Intermediate TIPS are volatile enough that someone who is 77 and risk-averse likely should stick with short-term TIPS unless buying individual TIPS and holding to maturity. I think a TIPS fund would enhance the liquidity of a CD ladder.
Risk is not a guarantor of return.

emlowe
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Re: Vtip short term tip etf ??

Post by emlowe » Tue Jul 17, 2018 1:29 pm

Fidelity has Fidelity® Inflation-Protected Bond Index Fund (Investor Class: FSIQX) ER: 0.19 or (Premium Class: FSYIX) ER: 0.09

No idea if you can purchase that anywhere other than Fidelity. And it's not short-term, more Intermediate I think

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