New ETFs On The Block: Vanguard Short-Term Inflation Protected Securities Index Fund (VTIP)

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Vanguard, the Wayne, Pennsylvania-based leader of low-cost equity-linked exchange-traded funds has launched the Vanguard Short-Term Inflation Protected Securities Index Fund (VTIP) as the firm continues to expand its offerings in the fixed-income asset class. This is the firm’s first product that focuses on the short-term TIPS market. Treasury Inflation Protected Securities (TIPS) have evoked much interest among a wide range …

Equities Tumble Ahead Of Earnings Season; Europe Drops After IMF Forecast

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[Chart courtesy of MarketWatch.com] Equities plunged today with the S&P 500 and NASDAQ extending losses for the third straight day as investors chose to remain on the sidelines while third quarter earnings season started unofficially. The Dow Jones Industrial Average (DJIA) slipped 110 points, finishing lower for the second day in a row. The 30-stock blue chip index turned overtly …

Major Market ETFs In Stall Speed As Concern Over Europe Lingers; VXX Soars, GDXJ Tanks

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[Chart courtesy of MarketWatch.com] Wall Street closed flat Tuesday despite surging in early trade as worries over Europe overshadowed upbeat US economic reports. The above chart says it all. The markets turned choppy in the last hour of trading as Dow Jones Newswire reported that former Greek Prime Minister Lucas Papademos has said Greece is preparing to leave the 17-member …

European Concerns Return As Equity ETFs Fall

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Chart courtesy of MarketWatch.com] Although today wasn’t a big mover or shaker, the S&P 500 fell 0.57%. However, some European indices such as the DAX and FTSE gained over 1%. Meanwhile, the Euro barely budged against the dollar, remaining at $1.31/Euro. The 10-year Treasury took another dip today, falling to a yield of 1.93%. Investors just don’t seem to have …

How TIPs Inflate Their Yields

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You think that some of the yields to be had when buying TIPs these days are simply mouthwatering and hard to resist given the current zero interest rate environment. Before you jump in with both feet, consider this WSJ report (subscription required) titled “How Inflation-Protected Funds Get To Inflate Their Yields:” How would you like to triple the yield on …