TIP: iShares Barclays Capital U.S. Treasury Inflation Protected Bond ETFs (TIP) the index includes all publicly issued, U.S. Treasury inflation-protected securities that have at least one year remaining to maturity, are rated investment grade, and have $250 million or more of outstanding face value. This popular issue was first issued in December 2004.
As previously stated, I have misgivings about the strategy of achieving inflation protection using these securities. That said, many institutions use them since their pension fund clients, for example, believe it a prudent strategy despite its many short-comings.
The expense ratio is .20% and AUM is now $20 billion, with average daily trading volume around 800,000 shares. The average duration of the holdings is less than 10 years. The current yield is 2.75% and 1-year total return as of May 2011 is 7.80%.Data as of May 2011
TIP Top Ten Holdings & Weightings
US Treasury Bond 2.375%: 5.05%
US Treasury Bond 3.875%: 4.90%
US Treasury Note 1.375%: 4.53%
US Treasury Note 1.875%: 4.37%
US Treasury Note 2%: 4.29%
US Treasury Bond 3.625%: 4.17%
US Treasury Note 3%: 4.03%
US Treasury Note 2%: 3.87%
US Treasury Note 1.125%: 3.84%
US Treasury Note 1.625%: 3.73%
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