FlexShares iBoxx 3-Year Target Duration TIPS Index Fund (TDTT) is an exchange-traded fund (ETF) designed to provide investment results that correspond generally to the price and yield performance of the iBoxx 3-Year Target Duration TIPS Index. This fund offers investors a focused exposure to U.S. Treasury Inflation-Protected Securities (TIPS), which are debt instruments issued by the U.S. government. It serves individuals and institutional investors seeking to manage inflation risk within their fixed income allocations, providing a tool for portfolio diversification against rising prices.
The underlying iBoxx 3-Year Target Duration TIPS Index measures the performance of U.S. dollar-denominated TIPS. These government bonds are specifically structured to protect investors from inflation over time. Unlike conventional bonds, the principal value of a TIPS adjusts upward with inflation and downward with deflation, as measured by the Consumer Price Index for All Urban Consumers (CPI-U). This adjustment directly impacts both the bond's principal at maturity and its semi-annual interest payments, which are calculated based on the adjusted principal.
The index maintains a target duration of approximately three years, which is a measure of a bond's price sensitivity to changes in interest rates. This specific duration target helps to manage the overall interest rate risk for the fund's holdings, aiming for a balance between inflation protection and interest rate volatility. The fund invests primarily in a diversified portfolio of TIPS with varying maturities, all selected to align with the index's duration and other criteria. It aims to provide a consistent and transparent exposure to the inflation-hedging characteristics inherent in these U.S. government securities.
TDTT provides a transparent and liquid investment vehicle for those seeking inflation protection and specific duration exposure within the U.S. fixed income market. It offers a straightforward way to access a basket of inflation-indexed bonds without directly purchasing individual securities. This ETF is accessible to a broad range of investors, including retail and institutional clients, through standard investment accounts on major exchanges. The fund generates revenue through an expense ratio charged to investors, is primarily distributed through online brokerage platforms and financial advisory channels, and offers global investors access to U.S. inflation-protected fixed income exposure.
FlexShares iBoxx 3-Year Target Duration TIPS Index Fund (TDTT) is an exchange-traded fund (ETF) designed to provide investment results that correspond generally to the price and yield performance of the iBoxx 3-Year Target Duration TIPS Index. This fund offers investors a focused exposure to U.S. Treasury Inflation-Protected Securities (TIPS), which are debt instruments issued by the U.S. government. It serves individuals and institutional investors seeking to manage inflation risk within their fixed income allocations, providing a tool for portfolio diversification against rising prices.
The underlying iBoxx 3-Year Target Duration TIPS Index measures the performance of U.S. dollar-denominated TIPS. These government bonds are specifically structured to protect investors from inflation over time. Unlike conventional bonds, the principal value of a TIPS adjusts upward with inflation and downward with deflation, as measured by the Consumer Price Index for All Urban Consumers (CPI-U). This adjustment directly impacts both the bond's principal at maturity and its semi-annual interest payments, which are calculated based on the adjusted principal.
The index maintains a target duration of approximately three years, which is a measure of a bond's price sensitivity to changes in interest rates. This specific duration target helps to manage the overall interest rate risk for the fund's holdings, aiming for a balance between inflation protection and interest rate volatility. The fund invests primarily in a diversified portfolio of TIPS with varying maturities, all selected to align with the index's duration and other criteria. It aims to provide a consistent and transparent exposure to the inflation-hedging characteristics inherent in these U.S. government securities.
TDTT provides a transparent and liquid investment vehicle for those seeking inflation protection and specific duration exposure within the U.S. fixed income market. It offers a straightforward way to access a basket of inflation-indexed bonds without directly purchasing individual securities. This ETF is accessible to a broad range of investors, including retail and institutional clients, through standard investment accounts on major exchanges. The fund generates revenue through an expense ratio charged to investors, is primarily distributed through online brokerage platforms and financial advisory channels, and offers global investors access to U.S. inflation-protected fixed income exposure.
