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TIPS ETFs Hit by ‘Perfect Storm’ of Tame Inflation, Rising Rates

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ETFs following inflation-indexed bonds have run into a buzzsaw this year due to low inflation expectations combined with a move higher in U.S. interest rates. The iShares TIPS Bond Fund (NYSEArca: TIP) is down nearly 5% the past three months. The ETF invests in Treasury Inflation Protected Securities. “TIPS–and especially TIPS fundholders–have encountered a perfect [...]

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