Northern Trust 2030 Inflation-Linked Distributing Ladder ETF

Frequently Asked Questions About TIPA

What does TIPA invest in?

The Northern Trust 2030 Inflation-Linked Distributing Ladder ETF (TIPA) is designed to deliver consistent, inflation-adjusted payouts. It achieves this by investing in U.S. Treasury Inflation Protected Securities (TIPS) that mature by 2030, with distributions comprising both interest income and principal from maturing bonds. This fund is ideally suited for investors who are systematically drawing down their assets and require robust protection against inflation to cover predictable expenses. It provides a steady stream of monthly income and annual principal payments, structured to unfold over a five-year period leading up to the 2030 final maturity.

What is the expense ratio of TIPA?

Northern Trust 2030 Inflation-Linked Distributing Ladder ETF (TIPA) charges an expense ratio of 0.10%. This is the annual fee deducted from fund assets to cover management and operations.

What is TIPA's dividend yield?

TIPA's trailing-twelve-month yield is 4.40%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of TIPA?

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

What is the credit quality of TIPA?

TIPA'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 TIPA?

Yield to maturity (YTM) is the total return you'd earn from TIPA if every bond in the portfolio is held to maturity at the current price. TIPA'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.