Money? Markets? Autoregressive heteroskedasticity? Ask me about it.
I made an allocation switch from DJP (commodity futures) to IPE. IPE, also known as SPDR Barclays Capital TIPS, is an inflation protecting product that is likely to be a more attractive choice to investors as worries of a stagflating (a economy in recession and inflation) economy hits the streets. Previously only available as relatively non-liquid securities from the US treasury, Treasury Inflation-Protected Securities, or TIPS, are essentially medium to long term bonds indexed to an inflation index such as the Consumer Price Index.
In fact, TIPS can even be global - a newly released ETF called the SPDR DB International Government Inflation-Protected Bond ETF (Symbol: WIP) is the first global ETF to launch in the states. I went with IPE instead because of its rock bottom expense ratio (0.19%) and my already significant international diversification - for such a low-yielding product, expense ratios are key. WIP, meanwhile, weighs in at a reasonable 0.50%, but it could be lower. If you're looking to add some negative beta to your portfolio … you can't go wrong with TIPS.
