- For those who have experienced whopping gains in growth stocks, it is now time to think about inflation protection.
- There are several investment vehicles for this purpose, but I select the Schwab U.S. TIPS ETF (SCHP) which holds Treasury Inflation-Protected Securities.
- SCHP, with its low expense ratio, makes it easy to invest in inflation protection, instead of having to navigate through the complexities of choosing between individual securities.
- The Schwab ETF also offers a better total return when compared to peer TIP from iShares, despite the latter having provided more dividends this year.
- Therefore, unless you care more about distributions landing in your bank account, SCHP makes better sense when also considering the performance factor.
For further details see:
SCHP: Offering Better Inflation Protection Than TIP, For Growth Investors