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PIMCO 1-5 Year US TIPS ETF STPZ

Analyst rating as of
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Morningstar’s Analysis

Will STPZ outperform in future?

Get our overall rating based on a fundamental assessment of the pillars below.

A solid strategy for short-term TIPS exposure, but there are cheaper alternatives.

Summary

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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.

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