"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.

"We've added two bond fund's to our buy list: PIMCO Total Return (PTTDX) and Loomis Sayles Bond (LSBRX)," says Mark Salzinger.

The editor of The No-Load Fund Investor explains, "We favor both funds for many of the same reasons: both have experienced, top-flight management supported by robust credit-research staffs." Here's his review.

"Both bond funds have performed strongly over the long-term and during recent market turbulence. And each has a relatively open mandate that allows their respective management teams the flexibility to scoop up attractive bonds from diverse sectors of the bond market in pursuit of both capital appreciation and income.

"PIMCO Total Return is the world's biggest bond fund, and second large mutual fund of any stripe, with $128 billion in assets. The fund's popularity is a product of the outstanding track record and enormous reputation of its manager, Bill Gross. Its 10-year annualized return of 6% puts the fund in the top 5% of all intermediate-term bond funds over that time.

"One of the best way to capture lower-risk commodity exposure is through funds that invest in Canada," says Mark Salzinger, noting "Much of Canada's economy is tied to natural resources."

In his The No-Load Fund Investor, the long-standing fund expert looks to two ways to invest north of the border: iShares MSCI Canada ETF (ASE: EWC) and Fidelity Canada (FICDX). Here is his review of both.

"Though its population is clustered primarily along its border with the US, Canada is vast: it is the second largest country in the world behind Russia. Unlike most developed countries, Canada is one of the few net exporters of energy.

"As such, the performance of the Canadian stock market has benefited enormously from rising commodity prices over the past several years. Over the past five years, the iShares MSCI Canada ETF has produced a total return of 316%, more than tripling the return of the S&P 500.

"Canada has room to grow its commodities production. Much of its far northern provinces remain untouched by mining or energy interests, and many of its highest potential resources are only now beginning to be exploited.

"Such attractive assets and the growing cash hoards of global natural resources companies have sparked numerous mergers and acquisitions between Canadian companies, further boosting stock prices.

"T. Rowe Price should be the first fund family to consider if you want to increase your exposure to emerging market equities," says Mark Salzinger and Sheldon Jacobs.

The editor of The No-Load Fund Investor explains, "Price has a fine general emerging market stock fund, along with the broadest lineup of regional emerging market funds, all guided by experienced, successful managers."

Among the Price funds, they note, "Price New Asia (PRASX) is our current favorite among Price's emerging market stock funds, and we recommend it strongly now as a speculative play on our favorite emerging region."

China, they add, accounts for 28.2% of New Asia's assets.They note, "China is fiscally the strongest of all the emerging market countries. Its economy is growing in the 10% plus area, exports are booming across various manufacturing sectors, and foreign exchange reserves recently reached $1 trillion and are headed even higher."

Meanwhile, India accounts for 27.2% of the fund's assets, they note. Salzinger and Jacobs explain, "Though India's stocks are expensive by traditional valuation measures, it offers an entrepreneurial dynamism that is the envy of much of the rest of the world. Also, India's consumer class is booming, partially thanks to increased incomes from outsourcing to India from companies in the developed world."

South Korean stocks, at 12.7% of assets, make up the next largest weighting, while Taiwan accounts for 9.7% of assets. "In South Korean, valuations are relatively low and R&D spending is relatively high." Taiwan, they suggest, acts as a "back door avenue to growth in Mainland China."

Each day, Steven Halpern's TheStockAdvisors.com features the latest investment ideas and market commentary from the financial newsletter community.