What this ETF is trying to do

The ISHARES 0-5 YEAR TIPS BOND ETF (ticker: STIP) is an exchange-traded fund. Based on its name, it focuses on short-term Treasury Inflation-Protected Securities.

What the numbers show

As of October 5, 2026, the current price of one share is $99.95. An estimated price from roughly one year ago was about $103.15.

When looking at how this ETF performed, it is important to understand two different types of returns:

• Price Return: This only tracks the change in the share price. Over the last year, the one-year price return was -3.10%. The year-to-date (YTD) price return is also negative at -2.38%.

• Total Return: This includes the share price changes plus any cash distributions paid to investors. Even though the share price dropped, the one-year total return was positive at 1.47%. The YTD total return was also positive at 1.14%.

Looking further back, the three-year total return was 15.47%, and the five-year total return was 15.13%.

Income and distribution explanation

This ETF provides cash to investors through distributions. The distribution yield is 4.73%. In the last 12 months, there were 8 distributions. These payments usually happen on a quarterly basis.

It is important to remember that a high distribution yield does not mean your total return will be that same percentage. Total return is the most complete way to see how much value an investment has gained or lost over time.

NAV erosion explanation

"NAV erosion" refers to a decline in the actual value of the assets held within the ETF. This ETF has an erosion-risk score of 94, which is described as "Stable / sideways." The severity of this risk is rated as "good," and there is no severe erosion-risk flag for this fund.

Pros

• Positive Total Returns: While the share price has dropped recently, the total return (which includes cash payments) has been positive over the last year, three years, and five years.

• Stable Risk Score: The erosion-risk score suggests the fund's value is relatively stable.

Cons

• Falling Share Prices: The price return for both the year-to-date period and the one-year period has been negative. This means the cost of a single share has gone down.

Beginner takeaway

When you look at an ETF, don't just look at the share price. A falling share price does not always mean you are losing money overall. Because this ETF pays distributions, the "total return" can be positive even if the "price return" is negative. Always check the total return to see the full picture of how the investment performed.