iShares Barclays TIPS Bond Fund Review

Barclays TIPS Bond Fund

Barclays TIPS bond fund is offered by the iShares fund family, and this fund invests mainly in inflation protection bonds offered by the US Government. The fund has assets worth almost twenty two billion dollars, and has a yield of 3.92%. TIPS bonds are inflation protected securities that the United States Treasury offers, and the fund attempts to achieve the same results as these bonds. The Barclays TIPS bond fund is an exchange traded fund, and Morningstar rates the fund as high credit quality and medium interest rate sensitivity. The expense ratio for the fund is point two percent, and the fund turnover is around thirteen percent.

The current i bonds interest rates are at four point six percent right now, but these are subject to change at regular intervals and the interest rates could drop in the future. Barclays TIPS bond fund offers stability and protection against inflation, and many investors like the fact that the fund consists mainly of holdings from the United States Government. Treasury bills and bonds are considered very safe, and are preferred by many investors because of the low level of risk that these securities pose. The maturity level of the holdings are staggered, with some bonds maturing in the short term, some which are of medium duration, and some holdings that are long term.

The Barclays TIPS bond fund has a return right now which is more than nine point five percent, and this fund is performing very well. The trading volume for the fund generally ranges between one million and two million, but on June 30, 2011 this fund had a volume of close to five million. Buying mutual funds can be risky at times, but when the fund in question only invests in secure US Government bonds, bills, and notes then the risk of loss is minimized.