TIPS FUNDS DRY UP

摘要

Vanguard Inflation-Protected Securities Fund typically pays quarterly dividends, but with interest rates low and no sign of inflation, the $21 billion fund won't be making a distribution on June 22. Dividends for Treasury Inflation-rnProtected Securities (TIPS) funds generally come from interest earned on holdings and adjustments for inflation, based on the consumer price index. Right now the CPI is in negative territory, down 1.3% from a year ago, the biggest fall in 50-plus years. Of course, investors "shouldn't really be buying the funds for income," says Daniel Wiener, editor of The Independent Adviser for Vanguard Investors newsletter.