Short-term TIPS. The shorter duration means more responsive to inflation and less sensitive to interest rate risk.
https://institutional.vanguard.com/iam/pdf/ISGCTIPS.pdf?cbdF...
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In theory, but not in practice. Inflation is up over 8% YoY, but short term TIPS are down over 2% - for a realized loss against inflation of over 10% on what should be a "safe" asset class:
https://www.google.com/finance/quote/VTAPX:MUTF?sa=X&ved=2ah...
The longer they exist, the more it feels TIPS are a sucker's bet.
You’re forgetting the dividend. But yes it’s not as good as an I bond
It's a very different thing to compare a fund vs holding the actual certificate. Same with the Bond Mutual Funds vs holding a Bond.
The Funds will decline because you have to sell old Bonds at a discount to buy up the new higher interest payout bonds. But if you held on to the original bond, then you'd still get the fixed payout. You'd just miss out on the opportunity of the new higher payout bonds on the market.