ETF Education Report: TIPD

What this ETF is trying to do

The Northern Trust 2055 Inflation-Linked Distributing Ladder ETF (TIPD) is an exchange-traded fund. Based on its holdings, it focuses on various United States Treasury bonds and notes. These are types of government debt used to manage inflation-linked investments.

What the numbers show

When looking at an ETF, it is important to understand two different types of returns: price return and total return.

• Price Return: This measures only the change in the share price. For TIPD, the one-year price return was approximately -11.69%. The year-to-date (YTD) price return was approximately -9.79%.

• Total Return: This includes the share price change plus any cash distributions paid out. The one-year total return was approximately -5.49%, and the YTD total return was approximately -4.69%.

Because the total return is higher than the price return, it shows that the cash distributions helped offset some of the share-price decline.

We can also look at an estimated price from roughly one year ago, which was $102.64. The current price is $90.64.

Income and distribution explanation

This ETF pays out cash to investors, known as distributions. The distribution yield is currently approximately 7.42%. This number describes the cash payments relative to the ETF's price. Over the last 12 months, there were 8 distributions. These payments usually happen on a quarterly basis, with Monday being the most common day for payouts.

It is important to remember that a high distribution yield does not mean the investor earned that full percentage as a total return.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling market price can sometimes look like erosion, they are not always the same thing.

StockValueFinder uses an erosion-risk score to measure this risk. TIPD has an erosion score of 75, which is labeled as "mild price erosion." This is a measurement of risk rather than a confirmed collapse of the fund's value. There is no severe erosion-risk flag for this ETF.

Pros

• The ETF provides regular cash distributions.

• The total return is higher than the price return, meaning distributions are adding value back to the overall performance.

Cons

• The ETF has experienced a share-price decline over the last year.

• The erosion-risk score indicates "mild price erosion."

Beginner takeaway

When looking at TIPD, it is helpful to distinguish between the share price and the cash income. While the share price has gone down, the distributions (the 7.42% yield) have helped improve the total return. Always remember that high yields can exist even when the share price is falling.

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Top Holdings

*Note: Holdings can change over time. These are the top holdings as of October 11, 2026.*

• United States Treasury Bonds 2.125%: 19.27%

• United States Treasury Notes 2.375%: 9.44%

• United States Treasury Notes 1.875%: 9.17%

• United States Treasury Bonds 1%: 8.80%

• United States Treasury Notes 0.125%: 7.80%

• United States Treasury Notes 1.625%: 7.21%

• United States Treasury Bonds 0.75%: 6.49%

• United States Treasury Bonds 0.125%: 3.77%

• United States Treasury Bonds 1.375%: 3.56%

• United States Treasury Notes 0.625%: 3.43%