LTPZ vs VTIP

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

VTIPAVanguard Short-Term Inflation-Protected Securities 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.

VTIP Inflation protection without the long-bond whiplash. VTIP holds only Treasury TIPS maturing inside five years, so CPI does most of the driving and rate swings do less of it, for 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.

VTIP Tracks a benchmark measuring the investment return of U.S. Treasury inflation-protected public obligations with remaining maturities under five years.

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.

• VTIP Three basis points a year, against a 0.12% median for Treasury bond ETFs in its group. Vanguard's at-cost setup shows up right in the fee line.vanguard.com
• TIPS principal ratchets with CPI, and the under-five-year maturity cap keeps duration short, so rate moves land lighter here than in full-curve TIPS funds like SCHP.vanguard.com
• Open since 2012 and now a multi-billion-dollar, actively traded fund that owns Treasury paper directly. Plain index rules, no swaps, no credit detours.

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.

• VTIP Short maturities cut both ways: less sensitivity to rates, and less exposure to shifts in long-run inflation expectations than a full-maturity TIPS fund such as SCHP.
• Income rides on CPI accruals, so the quarterly payout moves around rather than arriving as a steady coupon.
• This is one narrow slice of one market, short US Treasury TIPS, not a diversified bond portfolio.

Full LTPZ profile⁠

Full VTIP profile⁠