A proposed regulatory exemption could allow Vanguard's Inflation-Protected Securities Fund (VIPSX) to issue a class of ETF shares. The new fund would represent Vanguard's first actively managed ETF, as well as competition for the highly popular iShares TIPS ETF (TIP).While economic data has yet to prove that inflation should be a major concern for investors, net flows into inflation-protection funds suggest that the fear is real. Assets in VIPSX have ballooned from $17 billion at the end of 2008 to $27.5 billion today. Assets in TIP have increased from $7.6 billion in October of 2008 to $17.2 billion at the end of October 2009, according to recent data from the National Stock Exchange. (See the October ETF Scorecard).
Vanguard Inflation ETFs to Challenge TIPS
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