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Glossary ยท investing

What is TIPS (Treasury Inflation-Protected Securities)?

US Treasury bonds whose principal adjusts with inflation, protecting real purchasing power.

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TIPS pay a fixed coupon on an inflation-adjusted principal, so payments rise with CPI. They're a straightforward hedge against unexpected inflation for bond investors.

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Frequently asked questions

Are TIPS a good buy?

When real yields are positive and inflation is uncertain, they're an attractive addition to bond allocations.

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