Enhancements
2019 Intermediate TIPS
Intermediate TIPS Offer More Efficient Means of Inflation Protection
State Street committed to add intermediate TIPS in 2019 to reduce interest rate risk. An additional benefit is the higher historical correlation to the Consumer Price Index (CPI), an aggregate measure of consumer goods and services commonly used for identifying periods of inflation or deflation.
| Broad TIPS | Intermediate TIPS | |
| Long-Term Return Forecast | 2.2 | 2.3 |
| Long-Term Risk Forecast | 0.3 | 5.1 |
| Yield to Worst (%) | 1.89 | 1.80 |
| Option-Adjusted Duration (Years) | 8.3 | 5.19 |
| Historical Correlation to CPI | 0.13 | 0.26 |
