LTPZ ETF

LTPZ ETF is designed to track an index of long-term TIPS or Treasury Inflation-Protected Securities. Stricter immigration controls, tariffs, and increasing money supply could drive another inflation wave, making long-term TIPS a valuable tool in the future. LTPZ ETF excels in low-interest, high-inflation scenarios, offering solid income during stagflation but unsuitable for steady income seekers.

Long-term Treasury Inflation-Protected Securities (TIPS) are undervalued and a more beneficial addition to a 60/40 portfolio than unhedged Treasuries. Historical data shows that long-term TIPS are a strong defense against high inflation and extended downturns in the stock market. It is anticipated that the next twenty years will bring higher inflation rates and a greater likelihood of prolonged bear markets in stocks.

LTPZ: The Stock Market Bubble Raises The Stakes For TIPS

Investors looking to adjust their allocations may want to add Treasury Inflation-Protected Securities, or TIPS, to their fixed income portfolio. At least since the CPI notched a 9% year-over-year increase in the summer of 2022, inflation has been back on investors' minds.

Both nominal and real rates are down across the curve. The catch is that the curve now embeds some very aggressive Fed easing assumptions. Buying long-duration TIPS doesn't offer a particularly attractive risk/reward here.

The PIMCO 15+ Year U.S. TIPS Index Exchange-Traded Fund offers a great opportunity to profit from a potential decrease in US real (inflation-adjusted) borrowing costs. The LTPZ offer a 2% real yield in addition to payments tied to CPI, and will rise in price if long-term interest rate expectations fall relative to inflation expectations. The LTPZ has significant upside potential if real bond yields decline, which is likely due to the US government's rising debt servicing costs.

I'm not even retired and I've been buying long-term inflation-protected U.S. Treasury bonds in my 401(k) with both hands.