A TIPS Fund That Keeps a Lid on Interest Rate Risk
This ETF closely reflects immediate shifts in the Consumer Price Index while providing a duration-management feature.
FlexShares iBoxx 3 Year Target Duration TIPS ETF (TDTT) offers exposure to the Treasury Inflation-Protected Securities market while maintaining a three-year target duration for a reasonable fee.
Its short and targeted duration provides a high correlation to immediate inflation changes and reduces unintended interest-rate risk. However, it has a lower yield than its peers, and there are comparable funds at lower costs. It earns a Morningstar Analyst Rating of Bronze.
Phillip Yoo does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.