Philip DoylePIMCO 1-5 Year US TIPS ETFSTPZTOP PICKMay 31, 2010
ETF. Place to put low risk US cash. Safe in the face of potentially rising inflation. Real return bonds. It is a product he would like in Canada. Risk is Interest rates rising without inflation.
Inflation protected investment. Pays out on top of inflation. If investors believe inflation will persist, is a good investment. Would not recommend investing at this time - inflation will fall in the coming months. Not a good investment for beginners.
Very defensive ETF. For investors who have US$ and are concerned that inflation may go up. (TIPS are securities where returns are indexed to the CPI (consumer price index). As inflation picks up their payout should rise.