PIMCO 1-5 Year US TIPS Index ETF STPZ is a decent choice for exposure to US Treasury Inflation-Linked Bonds because it provides exposure to the short end of the Treasury Inflation-Protected Securities yield curve for a reasonably low fee. Actively managed funds tend to struggle to keep pace with low-price index funds because it is hard for them to recoup their fees, given the credit quality of the TIPS market. Despite its cost advantage, there are cheaper index alternatives. Consequently, it warrants a downgrade to a Morningstar Analyst Rating of Bronze from Silver.
PIMCO 1-5 Year US TIPS ETF STPZ
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Morningstar’s Analysis
The Morningstar Analysis section contains a thorough evaluation of an investment’s merits and drawbacks and often discusses the most important or decisive factors leading to the fund’s overall rating.
The Morningstar Analysis section contains a thorough evaluation of an investment’s merits and drawbacks and often discusses the most important or decisive factors leading to the fund’s overall rating.
Will STPZ outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
Process Pillar
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable STPZ’s performance objective and investment process is for both security selection and portfolio construction.
People Pillar
The People Pillar is our evaluation of the STPZ management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
Parent Pillar
The Parent Pillar is our rating of STPZ’s parent organization’s priorities and whether they’re in line with investors’ interests.
A solid strategy for short-term TIPS exposure, but there are cheaper alternatives.
