TIPs To Be Sold From SMA Portfolio Today

By on October 6, 2010

Treasury Inflation Protected Securities (TIPS) appear to be overpriced at the moment. An arbitrary decision has been made to eliminate all TIPS positions in the SMA Portfolio. iShares Barclays TIPS Bond (TIP) was sold at the market price. A limit order of 52.80 was placed on the more thinly traded PIMCO 1-5 Year US TIPS Index ETF (STPZ).

Alternatives will be researched for the redeployment of the proceeds from these sales, but I’m leaning towards investing the funds in the Vanguard Short-Term Corp Bond Index ETF (VCSH).

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