This post is part of a 12-article feature that can be read here: Today's best income ideas.

"The markets are littered with compelling buying opportunities that may be the best we see in a generation," says Keith Fitz-Gerald.

In The Money Map Report, he looks at a trio of income ETFs -- one focused on Treasury inflation protected securities, one invested in muni bonds, and one that buys high yield corporates.

"We are holding three positions in our portfolio which we believe can be bought with new money. First, we suggest iShares Lehman TIPS Bond ETF (NYSE: TIP). The 10 year TIPS' yield is 2.23% versus 2.40% for 10 year Treasuries.

Continue reading TIPs, munis & corporates: ETFs for income

TIPs, munis & corporates: ETFs for income originally appeared on BloggingStocks on Mon, 02 Mar 2009 13:20:00 EST. Please see our terms for use of feeds.

ProShares UltraShrt Lehman 7-10 Yr ETF (NYSE: PST) closed at $57.16. The U.S. Treasury is in the midst of raising $300 billion from credit investors to fund the economic stimulus plan. PST overall option implied volatility of 24 is near its three-week average according to Track Data, suggesting non-directional price movement.

iShares Barclays Capital Long Term Tr ETF (NYSE: TIP) closed at $100.50. TIP overall option implied volatility of 12 is near its 26-week average according to Track Data, suggesting non-directional price movement.

Volatility Index S&P 500 Options - VIX at 43.63; 10-day moving average is 43.25.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Options Update: Credit ETFs' volatility flat into government fund raising originally appeared on BloggingStocks on Tue, 10 Feb 2009 08:45:00 EST. Please see our terms for use of feeds.

"Like other US Treasuries, Treasury Inflation Protected Securities (TIPs) have virtually no credit risk," explains fund expert Mark Salzinger.

The editor of The No-Load Fund Investor adds, "Unlike other US Treasuries beyond short-term bills, however, TIPs also have no inflation risk." Here, he looks at an EYF based on TIPs.

"Twice a year, TIPs' principal valuis are adjusted upward by the amount of the increase in the Consumer Price Index Urban (CPI-U), thus protecting their holders against increases in inflation.

"The total return of the bond equals its yield plus the change in principal value based on inflation, changes in real interest rates (published interest rates minus inflation) and supply-demand in the market for TIPs.

"TIPs' yields are lower than those of regular Treasury sercurities of similar maturities. That's one of the disadvantages of TIPs.

"The other is that any increase in principal value due to the biannual inflation adjustment gets taxed every year as if it were received income.

Continue reading Fund expert offers tip on TIPs

Fund expert offers tip on TIPs originally appeared on BloggingStocks on Wed, 22 Oct 2008 10:10:00 EST. Please see our terms for use of feeds.

"The latest annual rate of inflation measured from last July to this July was 5.6%, the largest annual gain since way back in January 1991," observes Alexander Green.

Here, the investment director for the industry-leading The Oxford Club suggests that investors consider the iShares Lehman TIPS Bond Fund (ASE: TIP), noting, "This is a great way to buy a diversified portfolio of inflation-adjusted Treasuries and track them quite easily."

"The latest consumer price index figures were a bit of a shock; the annual rate of inflation measured from last July to this July was 5.6%, the largest annual gain since way back in January 1991.

"Despite these horrendous inflation figures, gold, mining shares and other inflation-sensitive indicators did nothing - or even fell. What gives?

"Remember that the market is always looking forward, not back. Investors are always more concerned with what lies ahead than what happened in the recent past. Next month or next year may be a different story entirely.

"That's why every investor should have a hedge in his portfolio, like inflation-adjusted Treasuries. These bonds are unique in the investment world. They are the only investment guaranteed to beat inflation. And they are great portfolio diversifiers. They don't march in step with either stocks or bonds.

Continue reading Inflation-adjusted gains: A good "TIP"

Inflation-adjusted gains: A good "TIP" originally appeared on BloggingStocks on Wed, 03 Sep 2008 14:55:00 EST. Please see our terms for use of feeds.

"In a new paradigm where risk will become a paranoid obsession with investors, a few TIPS make sense for income," says long-standing advisory industry expert Curtis Hesler.

In his The Professional Timing Service, he highlights the role of Treasury Inflation-Protected Securities within a long-term portfolio and reviews two ways for investors to purchases these issues.

"You can buy them in your Treasury Direct account. If you don't have a Treasury Direct account, you can open one at www.treasurydirect.gov. The problem is that so far, you can't open a retirement account - only an individual account. Go to the Treasury Direct Web site and bone up on all the details, especially if you are going to buy them online.

"TIPS work this way. They are U.S. government bonds issued by the Treasury. They are marketable in that you can sell them in the 'after' market. They come in terms of 5, 10, and 20 years. The interest rate on an issue is determined at auction, and they are sold in increments of $1,000.

Continue reading Inflation protection: Tips on TIPS

Inflation protection: Tips on TIPS originally appeared on BloggingStocks on Wed, 16 Apr 2008 11:07:00 EST. Please see our terms for use of feeds.

For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.

In his Forbes ETF Trader, Jim Lowell says, "My top conservative pick for 2008 is the iShares Lehman TIPs (NYSE: TIP). This exchange-traded fund enters the mix as a less-spirited way to play the recessionary hand that 2008 could deal.

"While the performance behavior of the underlying holdings will make the case for this being nothing more than a dolled up basket of long-term Treasuries, the market reality is that in times of duress, the momentum tends to favor these instruments over most others.

"But don't buy it for yield or price. Instead, view it as a life raft on the deck of all the above picks. It's good to know it's there if you need it -- and according to consensus estimates, in 2008 it's not a case of if but when."

As an alternative, conservative investors can buy the iShares S&P 100 Index Fund (ASE: OEF). The S&P 100 Index is comprised of the largest 100 stocks in the S&P 500 Index. As such, it's an intermediate play between the Dow 30 and the S&P 500, and ought to continue to benefit from the current flight to quality in '08.

Continue reading Best Stocks for 2008: Defensive stance with iShares Lehman TIPs (TIP)

Best Stocks for 2008: Defensive stance with iShares Lehman TIPs (TIP) originally appeared on BloggingStocks on Sat, 29 Dec 2007 16:45:00 EST. Please see our terms for use of feeds.

Giving away free coffee: theft or good for business? originally appeared on BloggingStocks on Thu, 07 Dec 2006 18:15:00 EST. Please see our terms for use of feeds.

There's nothing like year-end tips to spoil one's holiday spirit. Just when you can't stand to spend another cent on a present for friend or family member, you remember all those folks you still owe a gratuity.

For busy families that have a lot of service providers to thank (house cleaners, babysitters, hairdressers, etc.), the tipping tally can easily total in the thousands of dollars. (Read SmartMoney's take on what is reasonable and expected for year-end gratuities or take AOL's tipping quiz to see if you know it all already.)

As much as you might fantasize, you can't skip the tips. If you want to keep your tipping budget to a reasonable level, you don't have to play scrooge this season. Here's some ideas for how to thank the folks who help you out year-round without busting your budget:

Tip generously without blowing your budget originally appeared on BloggingStocks on Thu, 07 Dec 2006 05:00:00 EST. Please see our terms for use of feeds.