As your portfolio increases in size, it’s time to consider adding a different type of bond—Treasury Inflation-Protected Securities (TIPS). TIPS provide diversification and protection from unexpected inflation. Vanguard offers two TIPS funds—an intermediate-term fund (VIPSX) and a short-term fund (VTAPX). If you decide to include a Vanguard TIPS fund in your portfolio, you can choose between VIPSX ($3,000 minimum) with its higher expected risk and return, and VTAPX ($10,000 minimum) with its lower expected risk and return.
