VTIP

GhostSiX1Nine

* VTI (45%) → full U.S. market (clean foundation) * QQQM (20%) → growth + AI/tech dominance * VEA/VWO (15%) → global diversification * BND/VTIP (15%) → volatility control + income * VNQ (5%) →inflation + real asset exposure * SPRXX→ keeping cash here until I am tactically ready to buy I like this strategy; it works for me. * Simplified portfolio * Reduce overlap * Increased exposure to small/mid caps (via VTI)

Limp_Technology2497

I’m up the last two days on VTIP. So not bad?

ly5ergic

VTIP is for this

Helicobacter

VTIP would be my thought for inflation protection but the average bond duration is longer than one year,which means exposure to interest rate risk.

RadiatingMania

SGOV and maybe VTIP, although people been warning me about VTIP

therealjerseytom

Generally, for capital preservation with inflation specifically hedged, TIPS are designed exactly for that. If you're looking truly short term like this December, a money market position is fine. VTIP, SGOV, money market... something along those lines.

kronco

I'd look at the mix used by Vanguard target date funds as a starting point (they have thought this through). Perhaps as a core holding then add other funds for any "tilt" you prefer. Example: VTIVX (2045 target date) with some VXUS added if you want more international then the 35% VTIVX uses. Or maybe VTIP for some inflation protection (which Vanguard will later add as the target date approaches). [https://investor.vanguard.com/investment-products/mutual-funds/profile/vtivx#portfolio-composition](https://investor.vanguard.com/investment-products/mutual-funds/profile/vtivx#portfolio-composition)

basementdweller263

Appreciate the detail. A couple thoughts: • SGOV vs VTIP: SGOV is basically rate exposure (cash like), VTIP adds inflation linkage but can still move around because real yields change. For your “must be there” money, SGOV/T bills still makes sense. VTIP feels more like a small sleeve in the 2–5 year bucket rather than a core cash substitute. • AGNC: I’d be careful treating it as “low volatility” capital preservation. It is an mREIT with leverage and rate/spread risk. The dividend looks stable until it is not. If you want income with less blow up risk, I’d personally rather keep the short bucket boring and take risk only in the long bucket. • If your max pain is ~10% over 5 years, a simple framework is: – Bucket 1 (recast certainty): SGOV/T bills/CD ladder – Bucket 2 (flexibility): mix of short duration plus a modest equity sleeve (VXUS or SCHD) sized so a bad equity year doesn’t break the plan If you’re open, what rough % of the total is “must be available for recast” vs “nice to have for opportunities”?

No-Dust-1722

You’re absolutely right that I’m looking for capital preservation with some flexibility - I wanted to keep the post more general and fundamental so it wasn’t just people telling me to buy gold and bitcoin (you see how well that worked) Those buckets seem sensible. I’m currently 80% SGOV and 20% other short-term, mostly AGNC because it has a monthly dividend and low volatility. From other comments in this thread it seems VTIP has some advantages over SGOV so I’m considering that in the mix. I do have some tolerance for volatility in the short term bucket but I think less than is required for the S&P in its current state. VXUS and SCHD seem to be more stable/drawing down less than other ETFs but also seem able to capture at least some upside if equities start running away again. I do have a target amount for a recast but that plan is very tentative - it’s honestly just my “no better ideas” plan because reducing bills just makes life easier. The 2-5 year plan is really about financial flexibility, but housing is such a huge part of that that it is difficult to treat it separately. I think I’m more interested in capping overall draw-down - I think we could handle a 10% loss within 5 years without risking other opportunities. I figure that’s like a 70/30 SGOV/VXUS split (or similar) but I haven’t spread-sheeted it yet.

interstellara_

I'll be upfront with you, I've been rethinking VTIP after the latest ppi numbers don't match cpi. Had it in there because it beat the HYSA but I'm moving to VGSH/VBIL (VBIL Is close enough to SGOV with lower expense ratio because i'm in vanguard in a taxable for this) after the next dividend payout, so 2 weeks-ish. husband's in tech so his job isn't guaranteed and kid is 3 years out from college with an okay-but-not-great 529 (i didn't want to park everything in the 529 in case they didn't go to college) so job loss and college expenses could be major factors in the road ahead, and I have planned accordingly. You need to look at your 5 years ahead and see what bond fund could make sense for you or if it makes sense to have anything at all aside from an efund, for most folks it might not, aside from maybe a house fund, and then be willing to shift as factors shift :) stagflation is going to be about riding the waves, and by asking these questions and keeping your ears open, you'll be okay.

pigglesthepup

Consumer staples are always good as defensive stocks. But they're still equities. When equities crash, consumer staples will take a hit. They just rebound faster than the rest of the market. The better recession hedges are Treasuries: VTIP/STIP: short-term TIPS. Good for inflationary shocks -- like right now. SPTI/VGIT: intermediate Treasuries. Neutral ballast. SPTL/VGLT/TLT/EDV: deflationary shock absorbers. 2008 + 2020 style crisis hedges.

ParticipativeBystndr

VTIP

No-Dust-1722

I agree with a lot of this, I also have a significant position in VXUS and it has been doing pretty well. Thanks for the tip on VTIP, it looks interesting, but I’m not sure I understand the difference between that and short-term treasuries like SGOV? Is it because the rates are adjusted differently?

interstellara_

I think the ingredients for this stagflation vs the past really matter. We see that our allies are alienated by trump's actions and are working around us, so we know trade is going to continue around and outside the US. I feel safe enough continuing to DCA into VXUS and other broad international index funds for moderate growth. If real stagflation hits, raising rates is the only thing that is going to control it, so we're going to see better returns on CDs and HYSAs than before, which some people will move back into; CDs were huge back in early 80s stagflation years. I'm not so sure about real estate, it really depends on where and when, because high prices have been the game for so long. VTIP is where i'm parking any extra money outside the emergency fund that I'm not investing, but will need short term. It beats my HYSA for now. And then there's gold ETFs, or maybe just straight up gold if you want to take that risk in your own hands (I don't), materials ETFs, etc that might be a good buy. I have a very, very low percent of funds in gold, like literally less than 1%. I got in when it was $3000 last year.

interstellara_

VTIP does okay, lmao (but yeah, things are always down for the rest?)

interstellara_

For right now, I'm in a 50/40/10 split: VTI, VXUS, and VTIP in case of job loss. if we make it through the next couple of years without needing it, I'll just sell VTIP and reallocate into whatever needs rebalancing according to the way geopolitics and trade agreements look then. Before last year I was 80/20 in VTI/VXUS and made money, but times are different and the writing on the wall is that tariffs hurt us. War is going to hurt us more. The market is somewhat separate from politics, but the economy sure isn't going to be separate from the consequences of war.

earthcomedy

I don't buy too many leveraged funds...and i'm on the more conservative end regardless of what "thesis" / strategy i have. oil is too volatile and I don't have a good stomach for big drawdowns. Like the commodity ETFs that have mix of stuff. I mean if I want leverage I could just buy Proshares short nasdaq, etc.... have in the past..but not anymore. Me going into VTIP / STPZ says about me (Or part of me) - Yeah, Inflation is popping, and I want a better return over ultrashort bonds, but if there is a reversal, it's not too much pain. i think sometimes people go to leveraged funds when their capital base is too small relative to their objective. Not an issue for me.

earthcomedy

oh didn't know that (or forgot). Good comment then. Sold out of my OILK too early when the Battle (Hate to use that word war -- since it's been in a war state for a long time) started, but on the positive side, I put a lot more $ into HGER and CMDT and more into MLPX (Which is not that correlated - but still). My OILK position was small. I went huge into VTIP too and more into STPZ. I'll be adding to VTIP on Monday. Convert some other Ultrashort Bond positions to that.

heynowbeech

I am not a lawyer, but if a client requests that something be done the advisor should either 1) explain to the client why it can not or should not be done 2) if it should not but could be done but the client still insists it be done the advisor either needs to submit the transactions per the client request or terminate the relationship. At the end of the day, though, in order to get recompense you'd need to be able to quantify a loss due to the adviser not following instructions. Otherwise (again, I'm not a lawyer), you could file a complaint with the SEC and the SEC could "sanction" the advisor for noncompliance. As a side, if your folks are only in CDs or cash equivalents, they should not be paying an advisor on those balances. Just have them buy something like SGOV and/or VTIP.

HoneyBadger552

what??? you can invest in VTIP if youre scared about inflation.  the sp500 is 500 companies. 

HoneyBadger552

VTIP. theres your pace keeper

HoneyBadger552

split it between VTIP and IVV. if you want inflation protection and some market exposure

Digital-Doc-777

[https://imgur.com/a/FDBAdZp](https://imgur.com/a/FDBAdZp) If we look at the total return, across 13 years (or so), we can see the performance of VTI (Vanguard Total Stock Market Index), BND (Vanguard Total Bond Market Index), and VTIP (Vanguard Short Term Inflation Protected Index). The stocks will perform much better over the long term. The bonds should be used for current income, once retired.

ConcentrateOk523

Bad for TIPS bonds. Need to get rid of VTIP, big mistake to buy it.

FunnyGeologist7278

Thanks! Will look at adding some VTIP to my taxable. Do you need to hold for a certain amount of time to break even?

Awkward-Painter-2024

$250k in VT $150k in VTIP This is the only way...

pigglesthepup

This really depends on your time horizon for this money. SGOV has already been recommended. Know that it's super short duration (0-3 months), making very similar to a HYSA. You could go for some longer duration but still short-term ETFs: SPTS: Short-term treauries, average duration 2 years BSV: 75% treauries, 25% corporates, avg duration 3 years VTIP: short-term TIPS (inflation-linked Treauries), avg duration 2.5 years If you know both exactly how much you need in the future and when, individual bonds or a CD are fine. I strongly recommend individual investors stick to government (treasury, agency, muni) when buying individual bonds. Anything else requires extra research and the disclosed financials aren't always truthful (see: 2008).

pigglesthepup

You're welcome. All that said, I don't think TIPS are bad but just misunderstood. Captain Chaos wants rates low to run it hot to inflate away the debt. This will leave us ripe for inflationary shocks: *unexpected* inflation. I'm personally switching my SGOV position over to short-duration TIPS (VTIP). Shorter duration minimizes some of the volatility of the above things I listed and buffers against rate hikes (VTIP was only -3% in 2022). However, I am *not* replacing my main holdings of nominals with TIPS.

pigglesthepup

You want a **short-term** treasury fund. >TIP (iShares TIPS Bond ETF) Crashed hard in 2008 because CPI cratered and Lehman was the largest holder of TIPS at the time and dumped them all to raise cash. Also took a beating in 2022 from the rate hikes because intermediate duration (6 years). Both of these things are visible on TIP's full chart (why do people not look at charts?). A **short-term** TIPS fund like VTIP/STIP will have less volatility. VTIP/STIP returns have been better than BSV (nominal treasuries + investment grade corporates) in recent years because higher inflation. >AGG (iShares Core US Aggregate Bond ETF) Not short-term. Treasury holdings will keep it stable tho. Longer duration treasury funds have "crisis alpha" -- they *rise* in value during deflationary shocks. See the performance of TLT or EDV during 2008, Covid, or even this past April for an example. But they are not short-term. Only put in money you don't need for a long time.

LongDarkTeeTime

I have my cash in VMFXX that is yielding 4ish%. Why not something like that instead of TIPS ( or VTIP ETF)?

bank_truth

Keep a chunk in your HYSA so you can max out I-bonds early next year. They’re at a 1.10% fixed rate plus inflation right now and don’t swing with market yields. STIP or VTIP dropped when rates spiked in 2022. Buying individual TIPS or defined-maturity ETFs and holding to payout keeps that risk down. SGOV is fine for short-term Treasuries, less rate exposure but no inflation bump. Rates can always rise or fall depending on the Fed. For HYSAs you can check updated rates on our website before moving money.

ConcentrateOk523

The pain trade is always higher. Today will be another day of stocks going up. Owning 20 percent bonds has cost me over a million dollars this last decade. I am at the point of selling BND, BNDX, VTIP and going 100 percent stocks. Tom Lee and others on CNBC know what they are talking about.

ConcentrateOk523

Need to get out of VTIP and buy more VTI.

oodell

VTIP is exactly what you want

theTrueLodge

I would look an ETF of some kind. Someone here recommended a world market one to hedge against volatility in the U.S. or any country. You’ll need to do your homework. Something like this might give you minimal risk - • 50% bonds (core intermediate-term, e.g. BND or AGG) • 10% short-term bonds or CDs (for near-term income stability) • 20% dividend/value stocks (e.g. SCHD or VYM) • 10% total-market or global equities (e.g. VTI or VT) • 5% inflation-protected bonds (TIPS) (e.g. SCHP or VTIP) • 5% cash or money-market fund (for immediate liquidity)

hammsfam

Diversify out of individual meme stocks you read about on reddit and into low cost broad market index funds (i.e. VT). And keep any money for a house in something like U.S. Treasuries (VGIT/VGSH depending on when you plan on buying) and/or TIPS if unexpectedly high inflation would put the target out of reach (VTIP).

ConcentrateOk523

Yes I see what you are saying. I lost like $6,500 on JDS Uniphase back in early 2000s and was invested in many tech stocks at the time which declined. Now I just own VTI, VXUS, VBR, BND, BNDX and VTIP. My portfolio has gone from 1.1 million to almost 3 million in 9 years. Maybe just stick with index funds. I know I could have done better with the Mag 7 but based on past experience I just went with index funds.

oojoshua

No need to flee to cash ( unless you see a near term opportunity to buy a dip. ). Re-allocating some to international markets that are operating at a more sane P/E ratio and have currencies that are getting stronger relative to the dollar is completely warranted. Plenty of short term investments that are better than MMF. Going 70/30 with equities on one side and bonds/commodities on the other makes lots of sense. Personally holding: \~ 70% VUG ( US Large Cap ) VGK ( European Large Cap ) IEMG ( Emerging Markets ) \~20% IAU ( Gold ) \~10% VTIP ( Inflation Protected Treasuries \[ Cash Equiv \] ) The gold and VTIPS damp down on the volatility of VUG and have allowed the overall portfolio to outperform the S&P. When current US monetary, trade and immigration policy come home to roost ( sometime in the next few years ) there will be an opportunity to buy US equities on the dip. In the meantime, an inflationary currency will continue to push equity and commodity prices higher so enjoy the ride.

Confident_Oil_7495

What about VTIP?

Confident_Oil_7495

Ok I'm thinking about these changes based on everyone's feedback: Bucket 1: 5% in swvxx/vmfxx/spaxx (wherever my accounts land after consolidation) and 5% VTIP Bucket 2: 40% VOO/FXAIX/SWPPX 20% FFTWX/SCHD/VTV 5% SCHF Bucket 3: 30% SWLGX As retirement nears I'll shift percentages from Bucket 2 to Bucket 1 and reduce percentages in Bucket 3 as well.

Grazziellone

So I did a mix of bond ETFs, some in euros, some short term, some inflation protected. I'm still not 100% sure about them, I have to do more research, my broker charges me 1$ per transaction so it's easy to rebalance VTIP, VECA, BSV

kjmuell2

First - yes, it's confusing at first, that's normal. It'll get easier. Second - no one, and I mean NO ONE, including myself, has the "right" answer. It's about what lets your savings grow above inflation in a way where the risk doesn't keep you up at night. That said, if the thinking is about investing as someone in your early 20s, time is on your side, so I would say you should be aggressive. Especially in a Roth IRA - you can't pull from it for a long time, so you want what will compound well. My suggestion for my little sister, who is in almost the exact same spot as you, was to do the following: 50% VOO, 35% VTI, 5% VXUS, 5% VTIP, 5% company (or companies) that you have conviction in. If none come to mind, put that 5% in VOO as well. This is assuming you want something you can auto-contribute to for years and not think about. If that's the case, I'd also recommend using M1 for your roth IRA - you can set auto contributions up, and it will invest the money into whatever is underweight in your portfolio. Then like once or twice a year you can hope in and auto-balance your account if you like as well. But it's easy in that dividends will be automatically reinvested, and like I said, they autoinvest in whatever is underweight at the time. - Note: I used to use M1, but moved to fidelity as I am a very active investor. If you are looking to be active but just want a place to start, do the % split I suggested but use something like fidelity for your Roth

kjmuell2

Correct, don't split it between those 2. They are covering the same index - not sure what OC is talking about. VOO is better to buy and hold (lower expense ratio). You'd want to use SPY if you are playing options due to greater liquidity. But for your purproses, VOO is better. If you are concerned about Tariffs effect, you could put 5-10% in VXUS (everything outside of the US) to get you some diversification. Also, "growth" stocks - one's that don't pay dividends, are usually hit the hardest by economic slowdowns, so maybe instead of picking a growth fund, go basic with VOO or VTI, then some diversification into VXUS or a bond fund (I'd recommend VTIP for a Roth IRA).

TrickyBanana5044

VT and look into BND, VTIP, VCSH. I would probably go with 60% VT 20% BND 10% VTIP 10% VCSH but if you want simplicity 60% VT and 40% BND is fine, there aren't any rate hikes on the horizon.

ChaoticDad21

2% in JAAA and VTIP that I count as cash

ErroneousEncounter

What about TIPS? I had been reading about them, because they are supposed to be “inflationary protected” but when I looked at TIPS ETFs (TIP, VTIP) and the time period from March 2021 to June 2022… it seems as if it actually decreased in value. Does one have to purchase TIPS directly to get the inflation protection? Or am I missing something else?

TopherBrennan

Calls on VTIP.

Ferris61186

I personally feel that allocations under 10% aren’t worth it. 5% in defense isn’t going to noticeably affect your performance and just over complicates things. Maybe do something like 60% VTI, 20% VXUS, 10% BND, 10% GLD? If you don’t like nominal bonds you can swap out BND for VTIP.

ly5ergic

Even if the market was doing well that isn't a good place for a house down payment. CD, SGOV, HYSA whichever has the highest yield put it there and forget it until you get your house. There is also VTIP and STIP

TopherBrennan

Definitely don't pay off the mortgage, you'll get higher interest rates in a money market fund like VMFXX. Personally my money is mostly foreign bonds (BNDX) with a substantial minority in foreign stocks (VXUS) and a little bit in gold (IAU). If you want to play it super-super safe though you could do a money market fund or inflation protected bonds (VTIP). Note: all tickers except VMFXX are ETFs. All ETFs except IAU are Vanguard funds, and have traditional mutual fund counterparts which you can find via Vanguard's website.

Decent_Project_3395

A 100-year revaluation of bonds would be forced and would be seen universally as a default on US debt. Lowering interest rates is not going to have the effect of making the tariffs work. Rather, it will simply hasten the winding down of the reserve currency status of the US dollar. VTIP will cover surprises in inflation, but not necessarily dollar devaluation. If you invest in foreign stocks, these are usually exposed to "currency risk," which is what you want in this case. Most foreign bond funds are hedged to the dollar, so know what you are buying there. Gold and gold miners are already high, but as part of an all-weather portfolio, not bad at even these prices (10% max, sell if it moons, buy more if it lags). Foreign utilities an infrastructure. Foreign real estate. Look for dividends.

Decent_Project_3395

If you are saving for a house, you need that money soon. Don't gamble. Maybe look at SGOV, which is \*\*ultra short\*\* treasuries. Super safe. If it looks like we are going to have an inflation spike, you can switch into VTIP (Vanguard Inflation Protected Treasuries). These are more volatile though. They will protect you if we have an inflation spike, but they go up and down a little bit. There are some people who are saying we could have a 10% correction or something in the next 3 years. It is conceivable that it could be 50%. I don't know what is going to happen, but understand that the volatility you are seeing right now is fear, and it is fear of some bad things happening, not just fear of an overextended market. Keep the money you need soon as safe as you can.

Swirl_On_Top

4% isn't too bad. If you're worried about inflation hedge look into Something like $VTIP Candidly, I don't know enough about it but plan to research a bit more. Supposed to be a pure inflation hedge?

TopherBrennan

I'm already pulled out of the US stock market. I've got a big block of BNDX, a smaller block of VXUS, 5% allocation to IAU (but I just learned IAUM has a lower expense ratio), and calls on VTIP.

ai-moderator

# **TLDR** --- **Ticker:** VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) **Direction:** Up (Hedging strategy against inflation) **Prognosis:** OP bought 20 VTIP call options expiring 8/15, currently down ~8.44% but views it as a long-term inflation hedge, not a short-term trade. Illiquidity is a concern for future rollovers. **Current Status:** Currently -$212.00 (-8.44%) in unrealized losses. **Alternative Strategies Considered:** Commodities (imperfect correlation with inflation), Shorting regular treasuries while buying inflation-protected treasuries (high risk and brokerage limitations).

TopherBrennan

The House passing a debt-ceiling increase probably means we don't have to worry about a Treasury default for awhile but even so, I don't really regret selling \~$48k in VTIP and replacing it with BNDX + \~$2k in calls on VTIP. [https://www.bloomberg.com/news/articles/2025-04-10/house-passes-budget-to-advance-trump-tax-cuts-debt-limit-boost](https://www.bloomberg.com/news/articles/2025-04-10/house-passes-budget-to-advance-trump-tax-cuts-debt-limit-boost)

TopherBrennan

I've got calls on VTIP: protects me in case if hyperinflation but if there's a default my downside is like 2% of what it would be owning VTIP outright. Put-call parity motherfuckers.

ICohen2000

Yeah, I never short term traded before. But this year I was just watching the news and the impacts on the S&P and kept wanting to pull out. Every time Trump did something dumb I resisted the urge to pull out and then markets dropped and I felt like I should have trusted my intuition. So finally before "liberation day" I tried actually pulling out, and initially it seemed like it worked. I'm confused now, so haven't bought back yet. Do you think I should just stay with VTIP for now?

ICohen2000

Am wondering the same. I moved all my money from different S&P ETFs to VTIP and people told me I won't time the market properly. I thought it was fine because I'll follow the news. But now I'm confused. Do I move it back or is it about to fall again?

TopherBrennan

Oh dark thirty ticker check in: \* VTI: -5.88% \* VXUS: -6.19% \* BND: +0.11% \* VTIP: -0.16% \* GLD: -2.31% \* TSLR: -23.80% I guess at least US stocks outperformed international stocks. Yay?

kronco

VTIP (Short duration TIPs fund.)

Dirty_doc_k

VTIP to the moon. Stagflation here we come

TopherBrennan

Zero dark thirty ticker check-in! \* VTI: -0.7% \* VXUS: -0.18% \* BND: +0.7% \* VTIP: +0.27% \* GLD: -0.27% \* TSLR: -2.13%

enchanting_endeavor

VTIP for me.

Which_Audience2024

Still have 30k in VTIP - gonna liquidate to buy the dip XD lets fucking charge this bitch and make some shmoney this the biggest overreaction ive ever seen

TopherBrennan

Congress needs to raise the F ing debt ceiling so I can buy BND again (and stop worrying about a default on my VTIP...)

Status-Shock-880

Recessionary protection measures- money market, VTIP, gold, and the few us stocks that seem impervious to current trends.

kronco

PCLIX high fees or loads, though. [https://www.morningstar.com/funds/xnas/pclix/quote](https://www.morningstar.com/funds/xnas/pclix/quote) I've seen some other general funds but can't find them now. Article: [https://www.morningstar.com/markets/what-invest-during-high-inflation](https://www.morningstar.com/markets/what-invest-during-high-inflation) What about a combination including VTIP and an REIT fund?

sol_beach

The YIELD on both VTIP & STIP are below 3% so you are sacrificing INTEREST for safety. SGOV has the same safety as the US Dollar & the Yield more than 1% GREATER than yours.

No_Whole_Delivery

I also like VTIP or STIP for inflation protection.

Tomas_Dvorak1

SGOV and BIL etfs are good suggestions, but I think you can protect yourself against inflation with short-term TIPS funds, like VTIP or STIP. They have longer duration than SGOV or BIL so there is a bit more interest rate risk, but it is worth considering.

kronco

\>> I feel the need to post on arguably the best sub for some investment advice in these mild times. I loved that closing line. I feel compelled to add something so I'm gonna do two: CRMD, VTIP.

neuroscientist2

Look up VTIP … other mechanisms as well inflation protected etfs… gold would be better than cash and you don’t have to time that much keeps value fairly well … use some funds like sgol or gld or phys iau many more if you don’t want to literally have a safe of gold. I think your husband is onto something but ratio seems off. Can’t just sit around with cash inflation will be bad too.

lineargangriseup

Money market funds or short term treasury etfs like SHY or VGSH. VTIP is fine too.

kronco

You need to account for both interest rates and inflation expectations for TIPs. Rates can drop and TIPS values might not follow depending on inflation expectations: https://corporate.vanguard.com/content/corporatesite/us/en/corp/articles/pro-tips-take-into-account-inflation-protected-bonds.html Individual TIPS are kind of a pain to buy and sell. I buy long duration TIPS but only to hold until maturity; never with the intent to sell. Short duration, I use VTIP for some inflation protection (Vanguard adds VTIP to their target date funds about 5 years from retirement target date). VTIP is short duration and less interest rate sensitivity so I would not expect it to respond as much to rate changes. [https://www.morningstar.com/etfs/xnas/vtip/quote](https://www.morningstar.com/etfs/xnas/vtip/quote) notes this for that fund. Funds with higher duration may see their interest-rate risk dwarf the inflation-protection benefits of TIPS. While this fund’s muted duration curbs its potential return, it provides a purer inflation hedge with lower volatility. If TIPS bonds are held in a taxable account they have some special considerations as you have to pay taxes on the "phantom income" (google that). I think TIPS are best used for capital preservation and inflation protection. I would think short duration TIPS are less influenced by Fed rates and more influenced by inflation expectations.

lineargangriseup

"The enemy of a good plan is the dream of a perfect plan" In theory, interest rate cuts are identical for both etf owners and bond owners, as your etf will appreciate in value, and the yield will decrease, and for the bond holder his bond value will increase and his yield will decrease. You may fare better than the etf if you buy only 5 year tips, and you might do worse if they end up raising rates. I would hold VTIP for short term investments, cash for immediate expenses, and stocks/bonds for intermediate to long term investments.

skilliard7

I'd say VTIP. It provides short term inflation hedges, so if inflation skyrockets from tariffs, it goes up, but it also is fairly low duration so volatility is somewhat low.

DrXaos

VTIP is simplest, short term inflation protected securities. Maybe some commodities.

tdwaters70

I run the gamut, total bonds (BND), aggregate bonds (SCHZ), HY corp. (SHYG), Tips (VTIP). Some are to reduce volatility, others for income

kelp_shake

I would like to save money for a down payment on a house in about 3 years. I'm targeting a return greater than current savings/money market accounts, but with a bit less risk than simply going all in on the S&P500. What would be a good ETF allocation to achieve this? Some background: - I have an emergency fund. - I regularly contribute to retirement. - Money going into this strategy is what's left after paying bills and contributing to retirement. I plugged a few ETFs into Portfolio Visualizer and came up with 75% SCHD, 25% VTIP.  Would you recommend something different?

realbigflavor

100% VT in my taxable and 401k. Stock picking in my IRA with Fidelity. Have emergency funds in short term inflation protected bonds (VTIP).

glitter_my_dongle

15% VTIP 5% Gold. 5% Fundrise. 30% QQQ 10% VXUS. 15% SCHD. 15% SGOV. 5% UUP.

Midwest_Kingpin

[https://www.multpl.com/shiller-pe](https://www.multpl.com/shiller-pe) Yeah, I am putting all new money in my VTIP position until this changes.

cheugster

NVDA is riskier because it is one stock concentrated entirely on AI computer chips. I am holding long (several years). Those bonds are called TIPS. The easiest way to get exposure to them is buying shares of a tips bond fund, such as VTIP since you’re on Vanguard. Same goes for Utilities ETF’s and Healthcare ETF’s, you buy shares of the funds that provide broad exposure to many such companies in those sectors. Examples: VPU and VHT.

montepora

I suggest you look into treasury protected securities like VTIP or STIP.

DrXaos

but it performed great in 2020 and 2021 when markets were correctly anticipating inflation and cash was trash. Even the short duration of VTIP wasn't enough to counteract the bloodbath in all bonds as rates rose very rapidly from zero. In that environment only shortest term treasuries work. And I don't think we'll be seeing zero/near-zero ever again. 2009-2021 was the anomaly.

Rule_Of_72T

VTIP performed poorly during 2022 when we had high inflation.

DrXaos

VTIP for upcoming inflation

Dull-Cap1566

* **Core Holdings (URTH, VTV, FLTR)**: These make up the bulk of the portfolio, and they provide solid exposure to global stocks, U.S. value stocks, and bonds, which is a good foundation. * **Redundancy**: ETFs like **IAU** and **GLD** both track gold, and **IGSB** and **VTIP** both cover short-term bonds, so you might simplify by choosing one of each to avoid unnecessary overlap. * **Small Allocations**: With only 4-5% allocated to the other ETFs, it may not move the needle much. You could consider consolidating these into fewer ETFs with broader coverage, such as sticking with **IEMG** for emerging markets instead of splitting it with **EMXC**.

Embarrassed_Time_146

If you want safe money, the best option probably is either short term Treasuries or short term TIPs. Look into SHY, VGSH and VTIP. Defensive stock are still stocks, so they’re still risky and they’re still highly correlated with the stock market. My point is, they’re safe relative to VOO, but they’re not the safest thing in the world.

Ok-Elderberry1917

What does VTIP look like for state taxes? Taxes are what has led me to SGOV and SNSXX for cash equivalent holdings.

Mrknowitall666

Hysa, or high yield savings accounts, or money market funds or sgov are invested in 0 to 3 month government bonds. So, they're liquid and they earn rates, which currently are decent... 4.75% or so... Because that's the Fed funds rate, which the Fed has temporarily set that high to curb inflation. But, as of September, they're cutting rates. Probably another half percent before year end, and another 1% next year.... Because inflation is now 3% or so (depending on the measure). Meanwhile, tips funds are also treasury but designed to have an inflation feature. VTIP ARE Short-Term Inflation-Protected Securities Index Fund seeks to track the performance of a benchmark index that measures the investment return of inflation-protected public obligations of the U.S. Treasury with remaining maturities of less than five years. Just by having securities over 3 months will give it a better long term return profile than a 3 month bond.

tdwaters70

Bond ETFs are more liquid and can be bought and sold anytime, I believe they are also laddered. I like VTIP, it’s incredibly low volatility, and has a nice dividend.

ghostfacekicker

Up 6.56% but I have a conservative portfolio of mostly ETFs and I basically use it as a checking account. I keep cash reserves minimal, I’m not rich at all but I don’t like to hold onto rapidly depreciating assets. VTIP will do me just fine.

realbigflavor

Buy TIPS, I recommend VTIP from Vanguard. If you're intent on using active funds I would not recommend JEPI and would instead go with PIMIX or Vanguard's multisector bond fund which is similar. You can do 25% VTIP, 25% BIV (Intermediate Term Corp/Government Bonds), 25% PIMIX, 25% VGSH. With covered call etfs you're getting all the volatility and a limited upside, they do not make sense for anyone honestly.

Embarrassed_Time_146

Take into account that the price of gold is really volatile. If you’re investment horizon is one year, you could lose a lot of money if you invest in gold. For example, if you had bought gold at its all time high during the 80s, you would only recently had made the money back. If you’re afraid of the US dollar losing its buying power, you can invest in TIPs, which are bonds linked to inflation. VTIP is a short term inflation bond fund. Finally, regarding the “geopolitical uncertainty”, it has always existed. If you read the news it always seems like the world is going to end. Don’t panic.

Ben280301

What share of my portfolio should I put in these ETFs like VXUS and VTIP?

518nomad

>VXUS and VTIP have performed badly in last 10 years If you don't have a portion of your portfolio that underperforms another portion, then you likely aren't properly diversified. International equities have outperformed US equities over substantial periods of time. More importantly, geographic risk is uncompensated risk, i.e. risk for which you cannot expect to receive a premium. Uncompensated risk should be avoided, often through better diversification. Read more. Develop your own investment thesis. Ignore past performance. Stick to that thesis.

Ben280301

I considered VTI, but VXUS and VTIP have performed badly in last 10 years, thanks for book recommendation I’ll reed them, I’m currently watching Robert Shiller on Yale courses.

518nomad

Before picking individual stocks, ask yourself, "am I Warren Buffett?" If you are not Warren Buffett, then buy and hold a portfolio of low-cost, well-diversified index funds. Consider a r/Bogleheads portfolio such as VTI + VXUS + BND/VTIP. Read more about index fund investing and the psychology of money and investing. Three books to recommend on this are Morgan Housel's *The Psychology of Money,* Jack Bogle's *The Little Book of Common Sense Investing*, and Rick Ferri's *All About Asset Allocation.*