Ron on The MacroTourist

[Ron]

Hi Kevin, for the amateurs here (maybe just me!): is IVOL a good way to play your TIPS theme?

[Kevin Muir]

Hi Ron,

IVOL isn't bad, but it's much more complicated than just a pure inflation trade.

It's TIPS (without the short nominal) plus

long steepener options.

Really, RINF is the true ETF that most closely moves with inflation breakevens. Also - buying TIPS and shorting IEF also works.

Hope that helps,

Take care,

Kev

[Ron]

Thanks so much.