Inflation Outlook Boosts Appeal of TIPS ETF Despite Recent Struggles
- Real yield on LTPZ ETF is 2.2%, providing good return prospects if equities decline
- Surge in stocks has driven up yields, hurting LTPZ recently
- Inflation expectations rising again, which should boost LTPZ long-term
- LTPZ offers far better cash flow than dividends from S&P 500
- Any reversal in growth optimism could cause large rotation into long-dated TIPS like LTPZ