American Investment Services, Inc.

Disciplined, Diversified, & Cost Effective

Jul. 2009 – New TIPs Fund Recommendations

Last month we described Treasury Inflation Protected Securities (TIPS). We recommended these securities for those investors who are concerned, in particular, with the potential for a loss in portfolio purchasing power due to unexpected price inflation, that is, the possibility that actual price inflation might exceed the inflation protection “built in” to the prices of conventional bonds.

This month, on the back page we have provided specific investment vehicles that investors can use as an alternative to holding TIPS directly. These include the Vanguard Inflation-Protected Securities fund (VIPSX), a conventional open-end mutual fund, and the iShares Barclays TIPS Bond exchange traded fund (TIP). We combed the universe of TIPS vehicles available to retail investors to fi nd offerings that meet our strict criteria with regard to cost, historical risk and return, and investment approach. Once again, the iShares and Vanguard products rose to the top.

Also In This Issue

Quarterly Review Of Investment Policy
Rent Or Buy Your Next Home?
The High-Yield Dow Investment Strategy
U.S. Housing Market
Recent Market Statistics
The Dow Jones Industrials Ranked By Yield
Recommended Investment Vehicles