PCPI vs STIP

PCPIDPIMCO Inflation PLUS Active Exchange-Traded Fund

STIPAiShares 0-5 Year TIPS Bond ETF

In short

PCPI PIMCO's active answer to the TIPS index crowd: a short-duration core of inflation-linked bonds plus inflation derivatives, with managers free to shift the mix as the inflation picture does.

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

PCPI The fund seeks an inflation-adjusted real return through prudent management. It normally invests at least 80% of net assets in inflation-indexed bonds issued by U.S. and non-U.S. governments, agencies, instrumentalities, and corporations, complemented by inflation-related derivatives and other transactions.

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

• PCPI Active mandate: at least 80% in inflation-indexed bonds from U.S. and non-U.S. governments, agencies and companies, plus inflation-related derivatives.
• Primary exposure runs through short-duration TIPS and inflation breakeven positioning, which keeps interest-rate sensitivity lower than long-dated TIPS portfolios.pimco.com
• Plain 1940 Act ETF plumbing: pays quarterly, no K-1 at tax time.

• 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

• PCPI Costs more than the index trackers that dominate this group: 0.25% net of a waiver through October 31, 2027, against a 0.33% gross fee, versus 0.03% at SCHP and STIP.
• Thinly traded so far, so spreads can run wider than the household-name TIPS funds.
• A 2026 launch, so the record is short, and active calls on breakevens and non-U.S. linkers can wander from a plain TIPS index.

• 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 PCPI profile⁠

Full STIP profile⁠