AlmostDone
Recycles dryer sheets
- Joined
- Oct 4, 2006
- Messages
- 92
TIPS - I just can't seem to figure them out. The following is from the Vanguard TIPS fund:
"The yield quoted is the real yield, or the yield before adjusting for inflation. The actual yield on the Vanguard Inflation Protected Securities Fund will be a combination of the real yield and an inflation adjustment".
So the yield quoted is 2.34%. I read the above to say that this would be added to the inflation rate, which I'm sure is a positive number - let's say 2%. Adding these two numbers would give us 4.34%. I would expect this to be the actual yield. So why was the 1 year return 0.43%?
"The yield quoted is the real yield, or the yield before adjusting for inflation. The actual yield on the Vanguard Inflation Protected Securities Fund will be a combination of the real yield and an inflation adjustment".
So the yield quoted is 2.34%. I read the above to say that this would be added to the inflation rate, which I'm sure is a positive number - let's say 2%. Adding these two numbers would give us 4.34%. I would expect this to be the actual yield. So why was the 1 year return 0.43%?