At a glance
LDRI charges 0.1% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $22.4M 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 +2.1% with distributions reinvested, the weakest of those 8 funds.
The short version
The iShares iBonds 1-5 Year TIPS Ladder ETF (LDRI) is a fund of funds. It splits its money about equally among five iShares iBonds ETFs that hold inflation-protected Treasury bonds (TIPS) maturing in 2027 through 2031, as of July 31, 2026. Each June it swaps the nearest year for a new fifth year, keeping a rolling short-term ladder. It charges 0.10% a year but is small, with $22.4 million in assets on that date.
Price history
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LDRI +2.1% 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 | |
|---|---|---|---|---|---|---|
| LDRI official prospectus, to Dec 31, 2025 | — | +5.69% | — | — | — | +5.11% |
| Bloomberg US Universal Index index, same period | — | +7.58% | — | — | — | +5.98% |
| LDRI price data to Oct 27, 2026 | +1.8% | +2.1% | — | — | — | +4.1% |
- Over the year to Oct 27, 2026, LDRI returned +2.1%, 8th of 8 among similar funds.
- Its worst full calendar year was 2025 (+6.0%); its best was 2025 (+6.0%).
- The deepest fall in its price history was 29.6% (Dec 30, 2024 to Jan 1, 2025), recovered by Jan 8, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +1.8% | — |
| 2025 | +6.0% | +5.69% |
| 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) | $0.8100 | |
| 2025 | $1.0700 |
What's inside
As of Jul 31, 2026, the fund held 5 securities; the ten largest made up 99.86% of assets.
| Fund held | Weight | |
|---|---|---|
| ISHARES IBONDS OCT 2027 TERM TIPS ETF Other | 20.04% | |
| ISHARES IBONDS OCT 2028 TERM TIPS ETF Other | 20.01% | |
| ISHARES IBONDS OCT 2029 TERM TIPS ETF Other | 19.98% | |
| ISHARES IBONDS OCT 2030 TERM TIPS ETF Other | 19.94% | |
| ISHARES IBONDS OCT 2031 TERM TIPS ETF Other | 19.90% |
By country
United States 99.86%By asset type
Other 99.86%What changed recently
- Over the three months to Jul 31, 2026, investors added a net $4.1M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.15%, -0.39%, +0.14%.
How it works
LDRI tracks the BlackRock iBonds 1-5 Year TIPS Ladder Index. BlackRock Index Services, an affiliate of the fund's adviser, sets the index. The index owns no bonds directly. It holds iShares iBonds Term TIPS ETFs, each owning TIPS (Treasury bonds whose principal adjusts with inflation) that mature in a single year. As of July 31, 2026, LDRI held five, maturing in October 2027 through October 2031, each about 20% of assets.
The result is a bond ladder: money spread evenly across bonds coming due in successive years. Each year, on the last business day of June, the index drops the ETF nearest maturity, adds one maturing about five years out, and resets everything to equal weights. Weights drift between resets as prices move. If no iBonds ETF exists for a given year, the index holds fewer funds. Because the ladder keeps rolling, LDRI has no end date of its own.
The fund's adviser, BFA, runs LDRI passively and does not take defensive positions in a downturn. It uses representative sampling. This means the fund and its underlying ETFs may skip some index components but aim to match traits such as duration (price sensitivity to rate changes) and yield. LDRI may also lend securities worth up to a third of its total assets.
What it really costs
- LDRI charges 0.1% a year, versus an average of 0.86% for the similar funds below (1st of 8, cheapest first).
- Of that, 0% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $10 in the first year and $128 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| LDRI | $10 | $32 | $56 | $128 |
Structure and tax notes
- Invests in other funds rather than directly in stocks or bonds, so its holdings are those funds.
- 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 short-dated TIPS adjust with inflation, and in the year to Oct 27, 2026 it barely moved with stocks, with a beta (market sensitivity) of 0.02.
LDRI could add short-term, inflation-linked Treasury exposure. It launched Nov 7, 2024, so it has no history in the 2008, 2020 or 2022 downturns. In 2025, its first full calendar year, it returned 5.69%, with no losing quarter. Its deepest dip in the year to Oct 27, 2026 was 1.6%, a shallow loss for anyone raising cash then. Still, rising real interest rates (rates after inflation) can push prices down. Its trailing 12-month yield was 4.5% on that date, paid quarterly. TIPS income moves with inflation, so payouts can vary.
The 0.10% expense ratio in the Feb 23, 2026 prospectus works out to $10 in year one and $128 over ten years on $10,000 in the SEC's standard example. The fund is small, at $22.4 million in assets as of July 31, 2026. Past results don't predict future returns, and a plan should weigh the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors seeking inflation-protected Treasury bonds maturing within about five years (2027 to 2031 as of July 31, 2026) rather than longer, more rate-sensitive TIPS.
- People who prefer an automatic TIPS ladder: each June the index drops the nearest-maturity iBonds ETF and adds a new five-year one.
- Cost-conscious holders wanting small price swings: expenses are 0.10% a year, and one-year volatility was about 2% as of Oct 27, 2026.
Look elsewhere if
- Investors seeking growth: LDRI returned 2.1% in the year to Oct 27, 2026, and trailed the Bloomberg US Universal Index in 2025, 5.69% to 7.58%.
- Those needing steady, predictable income: payouts arrive quarterly and move with inflation, so the 4.5% trailing yield as of Oct 27, 2026 may not repeat.
- Anyone wary of small, young funds: LDRI launched Nov 7, 2024, and had $22.4 million in assets as of July 31, 2026.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| LDRI this fund | 0.1% | $22.4M | +2.1% | — |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
What does LDRI hold?
LDRI holds other ETFs, not bonds directly. As of July 31, 2026, about 99.9% of its assets sat in five iShares iBonds Term TIPS ETFs, maturing in October 2027, 2028, 2029, 2030 and 2031. Each was close to 20% of the fund, with 0.25% in cash. Those underlying funds own Treasury Inflation-Protected Securities (TIPS), US government bonds whose principal adjusts with inflation. The lineup changes each June, when the nearest maturity is swapped for a new five-year one.
How has LDRI performed?
Modestly. LDRI returned 5.69% in 2025, its first full calendar year. That was behind the 7.58% of the Bloomberg US Universal Index, a broad bond benchmark its prospectus uses for comparison. From its Nov 7, 2024 launch through Dec 31, 2025, it averaged 5.11% a year versus 5.98% for that index. In the year to Oct 27, 2026, it returned 2.1%, with price volatility of about 2%.
Does LDRI pay monthly dividends?
No. LDRI pays distributions quarterly. Over the 12 months to Oct 27, 2026, it paid $1.12 per share, a trailing yield of 4.5%. That figure may not repeat. TIPS income includes inflation adjustments to the bonds' principal, so payouts tend to rise when inflation runs hot and shrink when it cools. The prospectus also warns that income can fall when holdings are replaced with lower-yielding bonds.
Can LDRI lose money?
Yes. The prospectus says the fund's principal is not protected or guaranteed, even though its underlying funds own inflation-protected Treasury bonds. TIPS prices fall when real interest rates (rates after inflation) rise, and broader market shocks can hit the fund too. In the year to Oct 27, 2026, its deepest decline was 1.6%. But LDRI launched Nov 7, 2024, so it has no record in major downturns such as 2008, 2020 or 2022.
What's the difference between LDRI and BUFR?
They are very different funds despite similar names. BUFR, the FT Vest Laddered Buffer ETF, is a buffer, or defined-outcome, fund. Such funds typically use options on a stock index to limit some losses in exchange for capped gains. LDRI holds inflation-protected Treasury bonds through other iShares ETFs and uses no options. LDRI costs 0.10% a year versus 0.95% for BUFR. In the year to Oct 27, 2026, BUFR returned 11.6% and LDRI 2.1%. BUFR is far larger, at about $10.5 billion as of Aug 31, 2026.