US TIPS alternatve in Japan

[HeavyMetal]

Hi everyone,
US TIPS show fantastic yield now - around 8%
I wonder if something like this can be found in Japan among local brokers - similar Japanese asset, or US TIPS asset nominated in yen (not sure if it's good idea to buy it with current rate though)
Thanks!

[TokyoBoglehead]

Hi everyone,
US TIPS show fantastic yield now - around 8%
I wonder if something like this can be found in Japan among local brokers - similar Japanese asset, or US TIPS asset nominated in yen (not sure if it's good idea to buy it with current rate though)
Thanks!

Yen denominated? Yes, but expensive! -> https://fund.monex.co.jp/detail/06311053

American ETF -> https://www.blackrock.com/jp/individual ... s-bond-etf

The rule of thumb is TIPS only help with unforecasted inflation. So I would say you are late to the party.

[HeavyMetal]

Thanks for reply,

"Yen denominated" - oh, all in Japanese, can't get which is yield but do not see any numbers close to 8%. Is it US TIPS in yen? Or local. What's their current div. yield?

"I would say you are late to the party"
Why so? AFAIK TIPS haven't had such high div. yield before (in recent past). Or has it.

[TokyoBoglehead]

Thanks for reply,

"Yen denominated" - oh, all in Japanese, can't get which is yield but do not see any numbers close to 8%. Is it US TIPS in yen? Or local. What's their current div. yield?

"I would say you are late to the party"
Why so? AFAIK TIPS haven't had such high div. yield before (in recent past). Or has it.

It is a global Inflation Indexed Bond fund. I attached a shot of the holdings. (Note - It is far too expensive, I would not even suggest it seriously). The American ETF is sounder.

"I would say you are late to the party"
Why so? AFAIK TIPS haven't had such high div. yield before (in recent past). Or has it.

Tips are just strange - https://awealthofcommonsense.com/2022/0 ... ion-at-9/

[HeavyMetal]

Yeah that's strange long-term TIPS are so volatile
Still, might be a good time to buy them now, no? They seem to be at the fair price level now, and 8% yield is times more than most dividend aristocrats offer. This is based on my thinking that TIPS yield is based on price, only. Means its' dividends can't be reduced, unlike any common stock.

[TokyoBoglehead]

Yeah that's strange long-term TIPS are so volatile
Still, might be a good time to buy them now, no? They seem to be at the fair price level now, and 8% yield is times more than most dividend aristocrats offer. This is based on my thinking that TIPS yield is based on price, only. Means its' dividends can't be reduced, unlike any common stock.

For bond funds, the coupon/dividend is what matters. Investors should mostly ignore the NAV for long-term investing. The coupon is indeed guaranteed, and secure for American government debt.

Take a look at the other American bond ETFs denominated in Yen. Hedged and unhedged.https://www.jpx.co.jp/english/equities/ ... 01-09.html

Or option 2. Buy not and strips directly from your broker and hold til maturity.