Investors in the [[TIP]] ETF - an index fund that holds the full range of Treasury Inflation-Protected Securities - got a big surprise this week: a stunning 6.2% drop in value amid a what appeared major "safe haven" Treasury rally.
Investors value TIPS for their safety. They are a Treasury security with a principal balance that rises and falls with the official rate of U.S. inflation. Investors in individual TIPS, when purchased at an originating auction, are guaranteed to receive at least the original par value at maturity, even if deflation rages for years.
But