LTPZ vs STIP

LTPZCPIMCO 15+ Year U.S. TIPS Index Exchange-Traded Fund

STIPAiShares 0-5 Year TIPS Bond ETF

In short

LTPZ Inflation protection with the duration dial cranked all the way up. LTPZ holds only TIPS maturing in 15 years or more, so it swings on long-term real yields far more than a whole-curve inflation fund.

STIP The short-fuse inflation hedge. STIP holds only inflation-linked Treasuries maturing inside five years, keeping the inflation link while sidestepping most of the long-bond rate swings. Three basis points a year.

Stated mandate

LTPZ The fund seeks total returns that closely track, before fees and expenses, the return of its specified index. It uses representative sampling to obtain exposure to that index.

STIP The fund seeks to track an index of U.S. Treasury inflation-protected securities with maturities under five years, offering inflation hedging while managing duration risk.

Why people hold it

• LTPZ Owns only Treasury inflation-linked bonds maturing in 15 years or more, the long slice that broad TIPS funds dilute with short notes.pimco.com
• Rules-based, not a curve-timing bet: it samples the 15+ year U.S. inflation-linked Treasury index instead of leaving maturity calls to a manager.pimco.com
• Has run the same long-TIPS mandate since launching in 2009, a track record spanning very different rate and inflation regimes.

• STIP Three basis points a year, roughly a quarter of the typical fee in its Treasury ETF group. On cost, this is near the floor for bond funds.
• Maturities capped under five years by design, so the inflation adjustment stays and the long-duration price swings largely do not.
• Running since 2010, a multi-billion-dollar fund that trades actively. Plain index construction, US Treasuries only.
• Sits in the upper half of the Treasury bond ETFs we cover, one of the stronger short-maturity builds in that group.

Worth knowing

• LTPZ At 0.20% a year it costs more than the typical Treasury bond ETF, and whole-curve TIPS options such as SCHP charge a fraction of that.
• Long maturities cut both ways. When long-term real yields rise, prices drop hard. Inflation-linked does not mean price-stable.pimco.com
• Mid-sized and moderately traded, so spreads can show up in your fill price, and its payouts land irregularly rather than on a set schedule.

• STIP Short bonds accrue less inflation compensation than long-dated TIPS, and prices still move with real yields. This is a dampened hedge, not a pure one.
• Distributions are irregular. Payouts ride the inflation adjustment, so income arrives lumpy rather than as a steady check.
• Around 25 bonds, all at the front of the curve. SCHP spans the full TIPS maturity range for the same 0.03%.

Full LTPZ profile⁠

Full STIP profile⁠