How to use TIPS in your portfolio

How to use TIPS in your portfolio

Treasury Inflation-Protected Securities were introduced in 1997 to provide inflation-protected interest and principal payments. Unlike other bonds, which generate returns in nominal terms, TIPS act as a direct  hedge against inflation. TIPS Explained TIPS are bonds issued by the US Treasury with maturities of five, 10, or 30 years. They pay a fixed rate of interest every six months, but the amount varies based on changes in the principal value. …