Vanguard Bond Funds to Buy for Higher Rates: Vanguard Inflation-Protected Securities (VIPSX)
Minimum Initial Investment: $3,000
Now can be a good time to buy TIPS, which makes Vanguard Inflation-Protected Securities (MUTF:VIPSX) one of the best bond funds to buy now.
The best time to buy TIPS is generally when inflation is tame but expected to pick up during the holding period. Expectations for inflation over the next decade are between 2% and 2.5%; however the average rate is around 3%. Therefore, now is potentially a good time to buy into TIPS.
Looking beyond inflation expectations, many investment advisers recommend that TIPS bond funds like VIPSX remain a permanent part of a long-term portfolio.