Inflation-Protected Bond ETFs
Inflation-protected bond ETF’s are designed to prevent inflation from lowering the holder’s true return on investment. There are a number of indexes and bonds on the market that protect against inflation. They track things such as the Consumer Price Index, and their value is adjusted accordingly. These include the US Treasury Inflation Protected Securities Index, the Merrill Lynch 1-5 Years US Inflation Linked Treasury Index and more. Buying into these ETF’s allows the investor to earn a profit that isn’t dampened by inflation. There are currently twelve of these types of ETF’s available for investors to take a look at.
