Inflation bonds receive "coupon" from 2 factors: Real Yield embedded in bonds bought + CPI performance. While Real Yield is paid out in Cash, real yields have been low last several years. Negative in fact. On the other hand, CPI led coupons get accumulated as principal in the bond itself and the principal is paid to the bond holder with the CPI accumulation factors.
Now, when an ETF holds Inflation bonds, on one hand, investors in that ETF expect to be paid a coupon (since they are holding bonds). But on the other hand, the ETF issuer is not receiving much cash. Rather ETF issuer finds principal of the bonds has gone up.
None of this affects the NAV of Inflation ETFs. But it does impact how cash is paid out to ETF holders.
ETF issuers might need to actually sell some bonds to generate the cash. or they might wait on bond maturity to generate cash. Life gets complicated when it comes to determining coupon payments and definitely forecasting coupon payments.
ETF issuers have a lot of latitude in how much and when to pay out.
Since no one knows what ETF issuers will eventually decide, and since ETF issuer decides individually, projecting coupons may be hard to do.
But none of this impact NAV. ETF holder can always sell some of the Inflation ETF to generate the cash required.
Since this triggers taxes in taxable accounts, many investors and advisors prefer not to hold inflation bonds in their portfolios. Inflation bonds are not as liquid as fixed coupon treasuries.
Sometimes, such product aversion, can create useful sources of returns for investors willing to take on the risk that others dont. It helps that these are US government credit (as long as there is no default).

While I have my own issues with student loan forgiveness, I can understand the perspective of Millennials and Gen Zs who think it’s hypocritical that many in the older generation were perfectly fine with two massive government taxpayer funded bailouts of financial markets in 2008-09 and 2020 in which the younger generations have little invested because in part they are laden with student debt. Not to mention the fact that in some cases I imagine they are indebted to the very banks that were bailed out with taxpayer dollars in 2009. That is on top of the bailouts “small businesses” got in 2020, which the government defines as any company with less than 500 employees—many large companies qualified.
And finally, the cost of tuition is astonishing today even at public universities, when the older generations had much more affordable educations. The average cost of attendance for a student living on campus at a public 4-year in-state institution is $25,707 per year or $102,828 over 4 years. Out-of-state students pay $43,421 per year or $173,684 over 4 years. Private, nonprofit university students pay $54,501 per year or $218,004 over 4 years. This in a country where tuition at public universities was once exceedingly low and in certain cases free. It is also true that it is extremely difficult for anyone to have a middle class life today without a college degree when this was not the case in earlier generations. Well-paying Industrial blue collar jobs that don’t require a degree have largely disappeared in 2023. So kids have to go to college and they end up in debt because of it.

Yes. "Woke" has just gone way too far. It's to the point where any recognizable standard of behavior or academic touchstone has become the enemy. That's just wrong. We live today in a society in which the overarching norm is excessive ridiculous, individual-ism: I must be permitted to do whatever I want, and be free to be ME. But who is ME? Well, I haven't figured that out yet, and don't care to be bothered to give any attention to Reality. I'll just be "me" in my own little vacuum which I foist upon everyone else, because no one has the balls to say: "wait a minute. You can't claim X or Y or Z without any kind of evidence except your own feelings.
Critical Thinking, much??????? LOGIC was a REQUIRED course when I entered college as a freshman. And at least some Philosophy courses were mandatory, as well: to expose students to challenging ideas, to investigate the nature of the way things ARE. Sad to see that Philosophy has morphed into mere word-games in more recent years. Deeper questions of Ethics and Meaning are left for someone else to worry about. What a pity.
But nevermind all that. I just want to blare this gawd-awful noise with my windows rolled down in my car, loud enough to wake the dead and shake buildings as I pass by. Because consideration for others doesn't matter to me, nor the car manufacturers who pander to brain-dead narcissists like me.

I would wager a sizable sum that Baseball_Fan has never read the 1619 Project and is merely parroting what he hears from the usual sources. Nor does he know what Marxism is. I suspect any sort of taxation to him for purposes other than the protection of his personal property he views as Marxism. Wanting, say, a public park or public schools makes you a Marxist. Meanwhile, numerous studies have shown the very capitalist stock market has performed better under “tax and spend” Democratic presidents than Republican ones.
Moreover, Biden worked for over 30 years as a senator of Delaware, the nation’s incorporation capital, helping to pass legislation highly favorable to the extremely capitalist credit card and banking industries. But somehow he’s a Marxist too for wanting poor people to eat, our roads and bridges to be repaired and children and the elderly to have healthcare.
Where do people who oppose any sort of taxpayer funded government programs think the money goes other than the private sector in the U.S.? The two work in concert in the U.S.. That is not Marxism by any means. The reason Moderna's stock has done so well is the government spent billions of dollars helping it develop vaccines and then purchased those vaccines from it. That is true for the entire healthcare sector by the way. And yes, as DavidrMoran has pointed out, such government spending stimulates the economy, creating jobs and increasing GDP. It's called the multiplier effect, not Marxism.

@LewisBraham
Thanks so much for the link to the new republic article. I am slowly digesting it and I wonder why I haven't heard much about this way out of the dilemma.
It does remind me that although we think the quality of contempory thought in previous years was much higher than now ( Federalist Papers, Gettysburg address etc) there was also an awful lot of junk similar to what we seem to be mired in now ( Hamilton and Burr's duel and extreme animosity, the attacks on Jefferson and his "black wife", Lincoln as a baboon etc)
https://en.wikipedia.org/wiki/Burr–Hamilton_duel

+1. I recall trying Fido years ago. There was a reason I did not stay with them.

MANY years ago, Fido converted most mutual fund a/c to brokerage a/c. But some still exist. Of course, most Fido 401k/403b a/c are mutual fund a/c but some may have brokerage windows.

@Crash: Marigolds! If what you planted are anything like the calendula* seeds I put out ~ 15 years ago, they reseed like mad and make a good cover you'll never have to replant.
* A marigold native to North America, only distantly related to some of the available ornamental marigolds. Common names can be a bit misleading ...

The ones I've got are red metamorph. I actually like the acrid aroma. And I'm using pots on the deck, we own no land.
:)

@Crash: Marigolds! If what you planted are anything like the calendula* seeds I put out ~ 15 years ago, they reseed like mad and make a good cover you'll never have to replant.
* A marigold native to North America, only distantly related to some of the available ornamental marigolds. Common names can be a bit misleading ...

Muted returns. Value over growth. International over US. Maybe 60/40 makes sense. Ten years is a very long time. But, this at least seems plausible.

Link

https://npr.org/2023/01/24/1151055903/doj-files-second-antitrust-suit-against-google-seeks-to-break-up-its-ad-business

The Justice Department and eight states on Tuesday filed a lawsuit against Google over its digital advertising business, claiming the tech giant illegally monopolizes the market for online ads.
It is the second antitrust suit federal authorities have brought against the company's advertising empire, which has for years been under scrutiny over allegations of self-dealing and choking off competitors.
"For 15 years, Google has pursued a course of anticompetitive conduct that has allowed it to halt the rise of rival technologies, manipulate auction mechanics, to insulate itself from competition, and force advertisers and publishers to use its tools," said Attorney General Merrick Garland at a press conference announcing the lawsuit.

I've been stepping into TAVFX, Third Ave Value fund and MOWNX, Moerus Worldwide funds...they own stocks of companies that deal in real assets...I'm thinking this is going to the wire meaning the debt limit and could get very wonky...US$ would go down bigly...do like the fund mgr comentary of TAVFX.."magical thinking the past 5 to 10 years, refers to SPACS, "private currency" dunno if he means shitcoins, trees growing to the sky US equities and transcending our physical world and reducing our dependcy of old economy activites like mining...I don't beleive any of those funds hold any Chinese company stocks as well which I consider a good thing, I don't care how they have doing lately etc. Also opened small position in SGGDX First Eagle Gold. To go along with strong bank, FDIC balance sheets CDs when my Tbills roll off. Still hold my PMEFX, PVCMX and HSAFX, Hussy which could hold up better than most during a debt limit crisis.
As far as all the politico comments, I'll just say I have an opposite viewpoint of most of what was written in this thread and will refrain from adding my comments as to not offend anyone and keep the focus on investing.
I also hope I am wrong but I can see the war in Ukraine spiraling out of control rapidly,,,my parents were in Europe during the War and the stories make me shiver....Mom saw folks chewing on the soles of their shoes and eating grass for nutrition....this has got to be de escelated. somehow someway, not pour more and more weapons in there.
Good Luck to All,
Baseball Fan

This (delete) rhetoric goes back at least to the (delete) beginning 50s or 60s. Subscribed to (the then very excellent) U.S. News & World Report as a teen - always enjoying reading of current events. So, the “can’t run a household this way” refrain goes back at least (delete) to the 50s and 60s. Truth is … A nation that prints its own currency and backs it with full faith and credit is much different than a household. That’s not to say it doesn’t have to practice good financial policies - just to say the two situations are dissimilar.
Now, despite these dire warnings of economic doom (delete) over the past 60 years, the nation has done pretty well over those decades, whether measured by the strength of our corporations and financial giants, scientific achievements or numbers of less fortunate in other countries who would like to live and work here. And, the USD is still the envy of most any other nation that issues a currency. So, let’s cool the rhetoric and get on with governing.
(Delete) Getting back to the “household” analogy. Can households raise armies and go to war? Are they charged with building and maintaining public highways, bridges, airports, seaports and schools? Do they / can they provide subsistence level services for the poor and needy or render emergency relief unto those whose lives have been devastated by fire or flood? The differences are stark - and too numerous to even quantify.

IMO, the US lawmakers, who grew up in the dollar-reserve-currency environment don't appreciate the global significance of a potential US default, technical or not. There are already serious global concerns on dollar-diplomacy/weaponization and this is really a bad time to mess with this debt-ceiling issue. The time for discussions is when federal appropriations are made, not when the bills come due.
Gold (physical GLD, gold-miners GDX) has been outperforming since October lows. https://stockcharts.com/h-perf/ui?s=GLD&compare=GDX,SPY&id=p72295455994
Global reserve currencies have 100+ or so years of life (in the list below from Bitcoin enthusiasts, you can ignore the last projection), and the US can only hasten the change. https://twitter.com/BTC_for_Freedom/status/1616047232947560448
"World reserve currency periods:
- Portugal (1450–1530)
- Spain (1530–1640)
- Netherlands (1640–1720)
- France (1720–1815)
- Great Britain (1815–1920)
- United States (1921-2030)
- Bitcoin (2030-Forever)"

Not a big proponent of tech analysis. However, several sources I follow have in the last week or so referenced this “breadth thrust” (bullish) indicator. If nothing else, word of it may have induced some investors to take more risk and might be reflected in those early 2023 numbers. That said, I suspect it would be very easy right now to get caught “flat-footed” / leaning the wrong way and get burned by a sharp market retrenchment. - ”You pays your money, and you takes your chances”
”For only the 25th time since World War II (an average of once every 3 1/2 years), the Dow Jones Industrials registered what technician Walter Deemer calls “breakaway momentum” (or “breadth thrust”). This often signals a new bull market (or a new intermediate upleg within a bull market).”
Barry Ritholtz

Not suprised. Teresa Kong, head of fixed income left Matthews last year. Just another senior investment person to leave Matthews Asia in recent years.

For Treasuries, I chose TIPS. At SCHP. Schwab. Rock bottom ER. 12-month yield is 7.2%, but what is the average duration in the fund? Ah, that's the key.
There's a goodly chunk of 1-3 years in there, followed closely by a slightly smaller chunk at 3-5 years. So, no one there is betting the farm on the long stuff, though there is a tranche, much smaller, at 10-20 years. And in between a not small portion with 5-7 year maturities. Guess they wanted to cover the waterfront. OK by me. Spread it out, some. Flexibility, yes? AAA-rated, of course.
But I can't find a portfolio turnover statistic. This is very new money for us--- just got in a week or two ago.

Sci-fi movies predicted this kind of biopharma practice years ago...it's all about the $$$. (and health, if you can afford it.)

Good for stock investors’ profits, bad for the American people. A significant part of the cost will be born by Medicare and Medicaid, i.e., taxpayers. It could also cost lives of the uninsured here as well as in developing nations buying our vaccines:
https://thenation.com/article/economy/big-pharma-greed-knows-no-bounds/tnamp/

Just last week, the drug giant Moderna was scrambling to explain away concerns about its plans to quadruple the price for its Covid-19 vaccine, from $26 per dose to $110–130 per dose. “I would think,” claimed Moderna CEO Stephane Bancel, “this type of pricing is consistent with the value.”
It costs Moderna as little as $2.85 to produce a dose of the vaccine. So we’re talking about a price that would be roughly $127 above the production cost for each shot that goes into someone’s arm. Even by the standard measures of pharmaceutical-company excess, this is, as Senators Elizabeth Warren (D-Mass.) and Peter Welch (D-Vt.) suggest, an example of “unseemly profiteering.”
Does Moderna need the money? No. Over the past two years, the company has made more than $18 billion in profits from its vaccine. The company is literally awash in money—so much so that its CEO is now worth more than $6 billion, up from $4.3 billion in 2021. “This is what corporate greed looks like,” says former secretary of labor Robert Reich.
But shouldn’t Moderna be able to profit from a vaccine it created? Actually, as the office of Senator Bernie Sanders notes, the Moderna vaccine was “developed in partnership with scientists from the National Institutes of Health (NIH), a U.S. government agency that is funded by U.S. taxpayers. The federal government directly provided $1.7 billion to Moderna’s COVID-19 vaccine research and development, and guaranteed the company billions more in sales.”

Abby Joseph Cohen * is a panelist in “Round II” of Barron’s Annual Roundtable (current Barron’s print edition). Her five recommendations for investment in 2023 include TROW. Some interesting thoughts about the firm as well about active management.
(Cohen): “My last pick is T. Rowe Price [TROW] … We are entering a period when good active management of portfolios is going to make a difference, after an extended time in which the market was largely momentum-driven. People invested in market-capitalization-weighted index-oriented strategies, such as exchange-traded funds, which became self-fulfilling ‘prophesies’, until they didn't. This approach led to a high concentration in the indexes of a small number of stocks which grew overvalued. A handful of good active managers were left by the wayside …..
“The company's mutual funds outperformed their benchmarks 76% of the time in the past 10 years. T. Rowe … pioneered no-load mutual funds. The idea was to provide a high-quality product with low fees. The company's funds still tend to have fees at the lower end of the spectrum. The stock hasn't performed well in the past year, and it has an attractive valuation. It is trading for 13 times trailing 12-month earnings, with a dividend yield of 4.3%. The consensus earnings estimate for next year is $7.74 a share …..
”If you believe that the U.S. economy will expand, T. Rowe will grow with it. The P/E ratio and dividend yield offer a layer of protection. The 52-week range on the stock is $93 to $194. The stock was trading on Jan. 6 at around $112. The concerns are priced in. What isn't priced in is greater interest in active investment.”
(Excerpted from Barron’s - January 23, 2023 / edited for brevity)
* Cohen once worked at T. Rowe Price as an analyst and had a long distinguished career at Goldman Sachs. She currently teaches business at Columbia University, NYC.