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TIPS recommendation by SIGFIG.com

Joe
in The Bullpen
I do my own investing but I like to see the recommendations made by professionals.

Robo Advisor SigFig.com offers a questionnaire which leads to a recommended portfolio, which for me turned out to be their "Balanced Growth portfolio" with the recommended allocations shown below.

What I find odd is the bond recommendation which consists of 27% Tips, 14% Emerging Markets Bonds, and nothing else:


U.S. Equities 35.0%

International Equities 14.0%

Emerging Mkt Equities 14.0%

Emerging Mkt Bonds 10.0%

Municipal Bonds 0.0%

U.S. Investment Grade Bonds 0.0%

TIPS 27.0%

Short-term Treasury 0.0%


Personally all of my current bond allocation is in bond funds holding short term treasuries and short term investment grade corporates and I don't see the value of anything else in the current rising rate environment, where bonds are perhaps more expensive than they ever have been (although of course I am not getting much yield).

Just curious whether other folks see the wisdom of the SigFig recommendation, especially the huge allocation to TIPS.

Joe
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