PIMCO 1-5 Year US TIPS Index Exchange-Traded Fund

PIMCO 1-5 Year US TIPS Index Exchange-Traded Fund (STPZ) tracks the ICE BofA 1-5 Year US Inflation-Linked Treasury Index. That index holds Treasury Inflation-Protected Securities (TIPS) with one to five years left until they mature. Because the bonds are short-term, their prices react less to interest-rate moves than longer TIPS do. Its 0.20% expense ratio is higher than all seven similar funds compared, including VTIP and STIP at 0.03%.

• Over the year to Oct 27, 2026, STPZ returned +1.4%, 4th of 8 among similar funds.
• Its 5-year annualized return was +2.4% and its 10-year +2.8%.
• In the 2020 COVID crash it fell 6.8% and regained its old high 2.7 months after the low.
• Its worst full calendar year was 2022 (-4.5%); its best was 2025 (+6.4%).
• The deepest fall in its price history was 6.8% (Mar 4, 2020 to Mar 18, 2020), recovered by Jun 8, 2020.

As of Jun 30, 2026, the fund held 23 securities; the ten largest made up 65.03% of assets.

The bonds mature in 2.9 years on average (weighted by size), with an average coupon of 1.2%.

• Over the three months to Jun 30, 2026, investors added a net $94.4M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.98%, +0.03%, -0.48%.

The fund aims to match the total return of the ICE BofA 1-5 Year US Inflation-Linked Treasury Index, before fees. TIPS are US Treasury bonds whose principal and interest rise with the Consumer Price Index (CPI). The US government's full faith and credit backs them. To qualify for the index, an issue needs one to five years left to maturity and at least $1 billion outstanding. As of September 30, 2026, the index held 20 issues with an average maturity of 2.83 years. It is capitalization-weighted, which means larger issues get larger weights. The holdings are updated monthly, so bonds drop out once they have less than a year left.

PIMCO uses representative sampling. It keeps at least 80% of total assets in index bonds, but it may not own every one or match their exact weights. This can make tracking less precise. The rest can go into other bonds, cash or derivatives such as futures and swaps. As of June 30, 2026, 99.66% of the fund was in US Treasury notes and bonds, with no derivatives. The largest note was 12.8% of assets, and the top ten made up 65%. Portfolio turnover was 26%.

Returns come from interest plus price changes. Prices rise when real interest rates (rates after inflation) fall or inflation rises. Prices fall when real rates rise.

• STPZ charges 0.2% a year, versus an average of 0.12% for the similar funds below (8th of 8, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $20 in the first year and $255 over 10 years (assuming a 5% annual return).

It holds short-term US Treasury bonds whose principal and interest adjust with the Consumer Price Index.

Short-term TIPS may help protect part of a portfolio's buying power while keeping interest-rate swings small. The fund launched in August 2009, so it has no record from the 2008 crisis. In the 2020 COVID crash it fell 6.8% over two weeks in March and recovered within 2.7 months. In 2022, real interest rates jumped. The fund dropped 6.7% between March and September and took about 20 months to recover, and it lost 4.24% for the full year. Anyone who sold in late 2022 would have locked in a loss.

The trailing 12-month yield was 4.65% as of October 27, 2026, paid quarterly, but TIPS payouts change with inflation. In the SEC's standard $10,000 example, costs come to $20 after one year and $255 after 10 years. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by bond funds with the closest average maturity and issuer mix (N-PORT).