FlexShares iBoxx 5-Year Target Duration TIPS ETF TDTF provides five-year-targeted duration for a portfolio of Treasury Inflation-Protected Securities that have maturities between three and 20 years and more than $2 billion Read more
TIPS let investors hedge against the possibility that the future rate of inflation is higher than the market expects.
TDTF is the only ETF that targets a five-year duration, removing duration volatility. Read more
Although TDTF is more correlated with inflation than broad funds, its duration is high enough to diminish its inflation-hedging capability compared with short-duration funds.
If the market overestimates the future rate of inflation, Treasuries will outperform TIPS.
If deflation occurs, the fund will distribute the inflation-adjusted decrease, offsetting the usual coupon payment. TDTF will suspend distributions until the decrease is fully distributed. Read more