iShares TIPS Bond ETF

Frequently Asked Questions About TIP

What does TIP invest in?

iShares Trust - iShares TIPS Bond ETF is an exchange traded fund launched by BlackRock, Inc. It is managed by BlackRock Fund Advisors. The fund invests in fixed income markets of the United States. It primarily invests in U.S. dollar denominated, fixed-rate, investment grade inflation-protected public obligations of the U.S. Treasury that have at least one year remaining to maturity. The fund seeks to replicate the performance of the ICE BofA US Broad Market Index and the ICE U.S. Treasury Inflation Linked Bond Index, by using representative sampling technique. iShares Trust - iShares TIPS Bond ETF was formed on December 4, 2003 and is domiciled in the United States.

What is the expense ratio of TIP?

iShares TIPS Bond ETF (TIP) charges an expense ratio of 0.18%. This is the annual fee deducted from fund assets to cover management and operations.

What is TIP's dividend yield?

TIP's trailing-twelve-month yield is 4.46%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of TIP?

Effective duration measures TIP's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. TIP's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of TIP?

TIP's credit quality breakdown — the share of holdings rated AAA through CCC and below — is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of TIP?

Yield to maturity (YTM) is the total return you'd earn from TIP if every bond in the portfolio is held to maturity at the current price. TIP's YTM is published on the fund's factsheet on the issuer's website — it differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.