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TIPS ETFs: Inflation Protection Still Has Risks

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Vanguard firmly believes that Treasury Inflation-Protected Securities (TIPS) can play a valuable role as part of a broadly diversified portfolio. However, it’s important to understand that the broad TIPS benchmark—the Barclays U.S. Treasury Inflation Protected Securities Index—possesses high interest rate risk (i.e., high portfolio duration). Given today’s low or even negative real yields and relatively [...]

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