A Strong Inflation Hedge From Vanguard
With its low fees, Vanguard Inflation-Protected Securities is a standout in its category.
Alfonso Bruno: Inflation-protected securities offer investors an effective hedge against inflation relative to traditional asset classes, such as stocks and bonds. Despite a lengthy U.S. recovery and historically low unemployment, inflation has remained stubbornly below that of the Federal Reserve’s 2% inflation target. This problem is only exacerbated when looking globally at other developed markets such as the eurozone and Japan, for example. Still, given that every investor is exposed to inflation, we believe that having a modest allocation to inflation-protected securities makes sense in many portfolios.
For this year to date through February 2019, the inflation-protected Morningstar Category is up 1.6%. Within that, Vanguard Inflation-Protected Securities fund is an excellent choice for investors looking for an inflation hedge. Unlike category peers, the fund will stay true to its Bloomberg Barclays U.S. Treasury Inflation Protected Index, despite an active approach, and does not court additional risk in areas like corporate bonds or commodities, for example. The fund’s extremely low fees and Vanguard's excellent stewardship solidify this fund’s place among the best within the category.
Alfonzo Bruno does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.