FlexShares iBoxx 3 Year Target Duration TIPS ETF (TDTT) offers exposure to the Treasury Inflation-Protected Securities market while maintaining a three-year target duration for a reasonable fee.
Its short and targeted duration provides a high correlation to immediate inflation changes and reduces unintended interest-rate risk. However, it has a lower yield than its peers, and there are comparable funds at lower costs. It earns a Morningstar Analyst Rating of Bronze.
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Phillip Yoo does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.