How commodities and short-term TIPS help combat inflation

May 29, 2019 | Whitepaper

How commodities and short-term TIPS help combat inflation

Paul Bosse

Paul Bosse
Vanguard Senior Investment Strategist

If you're looking to help protect your clients' portfolios from the negative impact of inflation, you may want to consider short-term TIPS (Treasury Inflation-Protected Securities) and commodities. However, each of these asset classes comes with its own set of advantages and risks. In this white paper, Vanguard Senior Investment Strategist Paul Bosse analyzes these asset classes on their ability to reduce the impact of unexpected inflation.

Notes:

  • All investing is subject to risk, including the possible loss of the money you invest.
  • Note that some or all of the income from the U.S. Treasury obligations held in the fund may be exempt from state or local taxes.
  • U.S. government backing of Treasury or agency securities applies only to the underlying securities and does not prevent share-price fluctuations. Unlike stocks and bonds, U.S. Treasury bills are guaranteed as to the timely payment of principal and interest.
  • Funds that concentrate on a relatively narrow market sector face the risk of higher share-price volatility.