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samclem · 08-13-2006, 04:16 PM

CT,

- Of course, if you need to buy the TIPS from a broker instead of the Treasury (because you can't wait for the auction or you want a different maturity date than the new ones have) then you'd pay a broker's commission. And, if you don't hold them until maturity then you'll pay another commission to sell them. There are no such fees for the Vanguard TIPS Fund (unless you buy/sell through a broker other than Vanguard)

- And, as we've beat to death in other conversations-- with the actual TIPS you know exactly how much you will get at maturity. With the TIPS fund there's no certainty of the price you'll get when you sell your shares. So, that could be another "cost".

08-13-2006, 04:16 PM	#4
samclem Thinks s/he gets paid by the post Join Date: May 2004 Posts: 4,304	CT, - Of course, if you need to buy the TIPS from a broker instead of the Treasury (because you can't wait for the auction or you want a different maturity date than the new ones have) then you'd pay a broker's commission. And, if you don't hold them until maturity then you'll pay another commission to sell them. There are no such fees for the Vanguard TIPS Fund (unless you buy/sell through a broker other than Vanguard) - And, as we've beat to death in other conversations-- with the actual TIPS you know exactly how much you will get at maturity. With the TIPS fund there's no certainty of the price you'll get when you sell your shares. So, that could be another "cost". __________________ "Freedom begins when you tell Mrs. Grundy to go fly a kite." - R. Heinlein