Inflation
US 1-10YR Gov’t Inflation - Linked Bond Index
Intermediate TIPS Offer More Efficient Means of Inflation Protection
Intermediate TIPS reduce interest rate risk and long-term return expectation and lower expected risk, with the additional benefit of a 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 Expected Return | 0.00% | 0.30% |
| Long-Term Expected Risk | 6.40% | 5% |
| Correlation to CPI | 0.16 | 0.25 |
| Yield to Worst | 0.69% | 0.49% |
| Option Adjusted Duration (Years) | 3.43 | 1.44 |
