At a glance
CPII charges 0.71% a year, above the 0.11% average of the 7 funds most like it (the most expensive of 8). It has $12.1M in assets, the 8th largest of that group; it paid 4.5% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +4.2% with distributions reinvested, the best of those 8 funds; over three years it returned +3.5% a year.
The short version
Ionic Inflation Protection ETF (CPII) is an actively managed fund. It holds Treasury Inflation-Protected Securities (TIPS) plus derivatives meant to gain when inflation or interest rates rise. Those derivatives are inflation swaps and options on interest rate swaps, and they set it apart from plain TIPS funds. So do its drawbacks: a 0.71% annual expense ratio, versus 0.11% on average for similar funds, and about $12.1 million in net assets as of January 31, 2025.
Price history
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CPII +4.2% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| CPII price data to Oct 27, 2026 | +4.7% | +4.2% | +3.5% | — | — | +3.7% |
- Over the year to Oct 27, 2026, CPII returned +4.2%, 1st of 8 among similar funds.
- Its worst full calendar year was 2023 (+1.8%); its best was 2024 (+6.0%).
- The deepest fall in its price history was 6.4% (Oct 24, 2022 to Jan 18, 2023), recovered by Sep 25, 2023.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +4.7% |
| 2025 | +2.9% |
| 2024 | +6.0% |
| 2023 | +1.8% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.6800 | |
| 2025 | $0.8100 | -22.4% |
| 2024 | $1.0433 | -6.8% |
| 2023 | $1.1200 |
What's inside
As of Jan 31, 2025, the fund held 8 securities; the ten largest made up 95.36% of assets, and 2.47% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| TSY INFL IX N/B Bonds and notes | 12.61% | |
| TSY INFL IX N/B Bonds and notes | 12.56% | |
| TSY INFL IX N/B Bonds and notes | 12.45% | |
| TSY INFL IX N/B Bonds and notes | 12.33% | |
| TSY INFL IX N/B Bonds and notes | 11.80% | |
| TSY INFL IX N/B Bonds and notes | 11.65% | |
| TSY INFL IX N/B Bonds and notes | 11.20% | |
| TSY INFL IX N/B Bonds and notes | 10.76% |
By country
United States 95.36%By issuer
US Treasury 95.36%The bonds mature in 1.1 years on average (weighted by size), with an average coupon of 0.24%.
Source: N-PORT holdings report as of Jan 31, 2025. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jan 31, 2025, investors added a net $0.00 (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -0.15%, +1.07%, +1.01%.
How it works
CPII tracks no index. Its sub-adviser, Ionic Capital Management LLC, picks positions actively, aiming for gains when inflation is high and rising. Normally up to 30% of net assets goes into inflation swaps and swaptions, sometimes more. The rest is in U.S. Treasuries, mainly Treasury Inflation-Protected Securities (TIPS), whose principal adjusts with the Consumer Price Index (CPI). As of January 31, 2025, eight TIPS issues, each 10.8% to 12.6% of assets, made up 95.4% of the fund, averaging about 1.1 years to maturity.
In an inflation swap, the fund receives the CPI's rise and pays a fixed rate. The manager favors five-year swaps, which gain if inflation, actual or expected, tops that rate and lose if it falls short. Payer swaptions, options on interest rate swaps purchased for an upfront premium, gain when rates rise and lose when rates fall. On January 31, 2025, the fund held one, expiring January 2027 and worth 1.8% of assets, plus a related swap.
The inflation swaps are held through a wholly owned Cayman Islands subsidiary (up to 25% of total assets) because their income wouldn't count toward a tax test the fund must pass. The derivatives trade over the counter, privately with dealers rather than on an exchange. Trading is frequent: turnover was 336%, per the prospectus filed August 26, 2024.
What it really costs
- CPII charges 0.71% a year, versus an average of 0.11% for the similar funds below (8th of 8, cheapest first).
- Of that, 0.7% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $73 in the first year and $883 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| CPII | $73 | $227 | $395 | $883 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
Its stated goal is gains when inflation is elevated and rising, using inflation swaps and interest rate options on top of a TIPS portfolio.
In small doses, CPII could hedge against rising inflation, but its record is short. It launched June 29, 2022, after the 2008 and 2020 crashes and partway through the 2022 bear market. Its weakest full calendar year, 2023, still gained 1.8%. Its deepest drop, 6.4% from October 2022 to January 2023, took about eight months to recover. For someone who may need cash in a bad year, those shallow dips help, though the fund hasn't faced a major crash.
Income was a 4.5% trailing 12-month yield as of October 27, 2026, paid quarterly, though TIPS-based payouts can vary with inflation. The 0.71% expense ratio is steep next to a 0.11% average for similar funds. The SEC's standard $10,000 example shows $73 in costs the first year and $883 over 10 years. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors seeking a small slice that aims to gain if inflation or interest rates climb, using swaps and swaptions on top of TIPS.
- Investors who want inflation protection with modest swings: through October 27, 2026, its deepest drop was 6.4%, and its weakest calendar year, 2023, gained 1.8%.
- Income-focused investors open to variable quarterly payouts; the trailing 12-month yield was 4.5% as of October 27, 2026.
Look elsewhere if
- Cost-conscious investors: its 0.71% expense ratio is the highest in its comparison group, where the average is 0.11% and VTIP charges 0.03%.
- Those wanting straightforward TIPS exposure: VTIP returned 5.3% a year over three years to October 30, 2026, versus CPII's 3.5% to October 27.
- Those wary of derivatives or tiny funds: CPII relies on swaps and swaptions and had net assets of $12.1 million on January 31, 2025.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| CPII this fund | 1.1 yrs | 0.71% | $12.1M | +4.2% | +3.5% |
| USFR WisdomTree Floating Rate Treasury Fund | 1.5 yrs | 0.15% | $18.76B | +4.1% | +4.6% |
| VGSH Vanguard Short-Term Treasury ETF | 1.9 yrs | 0.03% | $39.20B | +2.2% | +4.2% |
| SHY iShares 1-3 Year Treasury Bond ETF | 1.9 yrs | 0.15% | $25.91B | +1.7% | +3.9% |
| SHV iShares Short Treasury Bond ETF | 0.3 yrs | 0.15% | $20.97B | +3.3% | +4.3% |
| BIL SPDR Bloomberg 1-3 Month T-Bill ETF | 0.2 yrs | 0.1356% | $47.08B | +3.3% | +4.3% |
| SGOV iShares 0-3 Month Treasury Bond ETF | 0.1 yrs | 0.09% | $105.98B | +3.4% | +4.4% |
| VTIP Vanguard Short-Term Inflation-Protected Sec… | 2.4 yrs | 0.03% | $71.01B | +2.8% | +5.3% |
Questions investors ask
Is CPII a good hedge against inflation?
It is designed to be one, but its record is short and protection isn't guaranteed. CPII aims for gains when inflation is elevated and rising, pairing Treasury Inflation-Protected Securities (TIPS) with inflation swaps and interest rate options. Since launching June 29, 2022, it returned 1.81% in 2023, 6.02% in 2024 and 2.85% in 2025. Its inflation swaps lose value when inflation comes in below their fixed rate, so mild inflation can hold it back.
Does CPII pay dividends?
Yes, CPII pays distributions quarterly. Its trailing 12-month yield was 4.5% as of October 27, 2026, based on $0.86 per share paid over the prior year. As of January 31, 2025, 95.4% of the portfolio was in TIPS. Payouts from TIPS-based funds tend to rise and fall with inflation, so amounts can vary from one payment to the next. The yield reflects past payments, not a promise of future income.
What's the difference between CPII and VTIP?
Both hold inflation-protected Treasury bonds, but CPII adds derivatives and costs far more. Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) charges 0.03% a year versus CPII's 0.71%, and had about $71.0 billion in net assets as of June 30, 2026. CPII layers on inflation swaps and interest rate swaptions meant to profit when inflation or rates rise. Over one year, CPII returned 4.2% to October 27, 2026, versus VTIP's 2.8% to October 30. Over three years, VTIP led, 5.3% a year to 3.5%.
What is CPII's expense ratio?
CPII's expense ratio is 0.71% a year, including a 0.70% management fee, according to its prospectus filed August 26, 2024. That's far above the 0.11% average for the short-term Treasury and TIPS funds it's compared with. In the SEC's standard example, with $10,000 invested and a 5% annual return, costs would total about $73 after one year, $395 after five and $883 after 10. Frequent trading, with 336% portfolio turnover, can add costs not counted in the expense ratio.
Can you lose money in CPII?
Yes. The prospectus warns that investors could lose all or part of their money. Through October 27, 2026, CPII's deepest drop was 6.4%, from October 24, 2022, to January 18, 2023, and it took about eight months to recover. Its inflation swaps lose value if inflation falls, and its swaptions lose value if interest rates fall. These derivatives trade privately with dealers, so the fund also relies on those dealers to honor the contracts.