What this ETF is trying to do

The FLEXSHARES IBOXX 5-Year Target Duration TIPS Index Fund (TDTF) is an exchange-traded fund. It focuses on TIPS, which are Treasury Inflation-Protected Securities. These are government bonds designed to help protect the value of an investment from inflation.

What the numbers show

As of September 18, 2026, the share price was $22.86. To understand how the fund has performed, we look at two different types of returns: price return (the change in the share price) and total return (which includes both the price change and the cash distributions paid to investors).

• Year-to-Date (YTD): The price return is -4.61%, while the total return is -0.93%.

• One Year: The price return is -6.12%, and the total return is -1.09%.

• Three Year: The price return is -1.59%, but the total return is 12.67%.

For example, if you had invested $10,000 exactly one year ago at the estimated price of $24.35, the share-price decline alone would have reduced that $10,000 to approximately $9,388.

Income and distribution explanation

This ETF pays out cash to investors. Over the last 12 months, it had 9 payouts and a distribution yield of approximately 5.46%. While these payments provide cash income, it is important to remember that a high yield alone can be misleading. A high distribution rate does not guarantee that the original investment (the principal) will stay the same or grow.

NAV erosion explanation

"NAV erosion" happens when the underlying value of a fund's assets declines over time. StockValueFinder uses an erosion-risk score to measure this. TDTF has an erosion score of 75, which is labeled as "mild price erosion." This means there is a mild risk that the fund's value is deteriorating, though the severe erosion-risk flag is currently false.

Pros

• Positive Long-Term Total Return: The three-year total return is 12.67%.

• Regular Income: The fund provides regular cash distributions to shareholders.

• Inflation Focus: It invests in TIPS, which are meant to handle inflation.

Cons

• Recent Price Decline: Both the YTD and one-year price returns are negative.

• Mild Erosion Risk: The fund has a "mild" erosion-risk label.

• Negative Short-Term Total Return: The one-year total return is slightly negative at -1.09%.

Beginner takeaway

TDTF provides a way to invest in inflation-protected government bonds. While it has provided a positive total return over three years, the share price has declined recently. Investors should notice that the total return is higher than the price return because of the cash distributions. Always remember that receiving cash payments does not automatically protect your original investment from a falling share price.