You also have the original deal you bought into with the TIPS fund after rates rise.Sure, you still have the loss and could have gotten a better deal if you bought that individual tips after the drop in price. However you still have the original deal you purchased — the real return of the bond if held to maturity that you knew at the time of purchase. Not so much with a tips fund.An individual long-dated TIPS will fall in market value if real rates rise just like a TIPS fund will. A broker will report the market value/NAV in your statement.That is the whole point of buying an individual long dated tips vs a nominal treasury— protection from unexpected inflation. You might get different results with a tips fund as if there is unexpected inflation rates will likely rise to combat it leading to a fall in the fund’s value that may not be offset by the inflation protection rise (like happened in 2022)
Statistics: Posted by Northern Flicker — Mon May 13, 2024 6:47 pm