At a glance
TDTF charges 0.18% a year, above the 0.11% average of the 7 funds most like it (the 6th cheapest of 8). It has $1.04B in assets, the 6th largest of that group; it paid 5.11% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +0.0% with distributions reinvested, 2nd of those 8 funds; over three years it returned +4.8% a year. At its worst it fell 9.6% in the 2020 crash (S&P 500: 33.7%) and 11.8% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high within a month and 30 months after the lows. Its ten largest positions make up 71.6% of the fund, out of 17 in all.
The short version
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund (TDTF) is a Northern Trust ETF. It tracks an index of Treasury Inflation-Protected Securities (TIPS), which are US government bonds whose value is adjusted for inflation. It does not own every TIPS. Instead, it keeps the portfolio's sensitivity to interest rates near five years. Its 0.18% expense ratio is above the 0.11% average for similar funds and well above the 0.03% charged by Schwab U.S. TIPS ETF (SCHP).
Price history
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TDTF 0.0% 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 | |
|---|---|---|---|---|---|---|
| TDTF official prospectus, to Dec 31, 2025 | — | +7.86% | — | +1.83% | +3.21% | — |
| Bloomberg US Aggregate Bond Index index, same period | — | +7.30% | — | -0.36% | +2.01% | — |
| Bloomberg USTIPS Index index, same period | — | +7.01% | — | +1.13% | +3.08% | — |
| I Boxx5Year Target Duration TIPS Index index, same period | — | +7.94% | — | +2.01% | +3.38% | — |
| TDTF price data to Oct 27, 2026 | 0.0% | 0.0% | +4.8% | +0.8% | +2.7% | +2.1% |
- Over the year to Oct 27, 2026, TDTF returned 0.0%, 2nd of 8 among similar funds.
- Its 5-year annualized return was +0.8% and its 10-year +2.7%.
- In the 2020 COVID crash it fell 9.6% and regained its old high 0.9 months after the low.
- Its worst full calendar year was 2022 (-9.7%); its best was 2020 (+10.0%).
- The deepest fall in its price history was 12% (Mar 8, 2022 to Nov 3, 2022), recovered by Apr 3, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +0.0% | — |
| 2025 | +7.8% | +7.86% |
| 2024 | +2.4% | +2.19% |
| 2023 | +4.2% | +4.19% |
| 2022 | -9.7% | -9.47% |
| 2021 | +5.5% | +5.29% |
| 2020 | +10.0% | +10.17% |
| 2019 | +8.0% | +7.96% |
| 2018 | -0.8% | -0.86% |
| 2017 | +1.9% | +1.97% |
| 2016 | +4.4% | +4.22% |
| 2015 | -0.3% | — |
| 2014 | -0.6% | — |
| 2013 | -5.3% | — |
| 2012 | +5.4% | — |
| 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 | Lost 1.6% over that stretch · deepest drop along the way 9.6%, back to its old high 0.9 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 10.3% over that stretch · deepest drop along the way 11.8%, back to its old high 30.1 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.9000 | |
| 2025 | $1.0900 | +18.5% |
| 2024 | $0.9200 | -3.2% |
| 2023 | $0.9500 | -47.2% |
| 2022 | $1.8000 | +40.6% |
| 2021 | $1.2800 | +312.9% |
| 2020 | $0.3100 | -33.2% |
| 2019 | $0.4644 | -27.4% |
| 2018 | $0.6400 | +16.4% |
| 2017 | $0.5500 | +44.7% |
| 2016 | $0.3800 | +660.0% |
| 2015 | $0.0500 | -82.8% |
| 2014 | $0.2900 | +625.0% |
| 2013 | $0.0400 | -89.2% |
| 2012 | $0.3700 |
What's inside
As of Jul 31, 2026, the fund held 17 securities; the ten largest made up 71.6% of assets.
| Holding | Weight | |
|---|---|---|
| United States of America Bonds and notes | 12.43% | |
| United States of America Bonds and notes | 11.94% | |
| United States of America Bonds and notes | 11.57% | |
| United States of America Bonds and notes | 7.28% | |
| United States of America Bonds and notes | 5.17% | |
| United States of America Bonds and notes | 4.86% | |
| United States of America Bonds and notes | 4.65% | |
| United States of America Bonds and notes | 4.61% | |
| United States of America Bonds and notes | 4.59% | |
| United States of America Bonds and notes | 4.49% | |
| United States of America Bonds and notes | 4.40% | |
| United States of America Bonds and notes | 4.34% | |
| United States of America Bonds and notes | 4.30% | |
| United States of America Bonds and notes | 4.27% | |
| United States of America Bonds and notes | 4.21% |
By country
United States 99.62%By issuer
US Treasury 99.62%The bonds mature in 5.2 years on average (weighted by size), with an average coupon of 0.85%.
Source: N-PORT holdings report as of Jul 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2026, investors added a net $53.5M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -0.12%, -0.49%, -0.30%.
How it works
TDTF follows the iBoxx 5-Year Target Duration TIPS Index. S&P Dow Jones Indices runs the index and is independent of the fund. The index holds publicly issued TIPS that mature in at least three years and less than 20 years. A TIPS bond's principal is adjusted in line with the Consumer Price Index for All Urban Consumers (CPI-U), and interest is paid on that adjusted amount. The US government's full faith and credit backs the payments. The index held 19 TIPS as of December 31, 2025.
The weighting is what sets the fund apart. The index provider weights the bonds so their average duration stays near five years. Duration measures how much a bond's price moves when interest rates change. The higher the duration, the bigger the swing. The index is rebalanced monthly, and the fund generally follows it. The latest prospectus lists portfolio turnover of 59%.
NTI, the fund's adviser, generally owns the same bonds as the index in roughly the same proportions. It may sometimes hold a representative sample instead. At least 80% of assets go into index securities. Up to 20% may be in cash, money market funds, futures, options on futures or TBA (to-be-announced) trades. The fund may lend out securities worth up to one-third of its assets. As of July 31, 2026, it held 17 TIPS with an average maturity of 5.2 years.
What it really costs
- TDTF charges 0.18% a year, versus an average of 0.11% for the similar funds below (6th of 8, cheapest first).
- The fee includes a 0.01% waiver from the adviser, which may end.
- Using the prospectus's standard example, $10,000 invested would cost about $18 in the first year and $242 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| TDTF | $18 | $60 | $106 | $242 |
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
The fund holds only US Treasury bonds whose principal is adjusted for inflation, so it is built to help protect spending power over time.
TIPS can help protect spending power, but their prices still move with interest rates. When rates jumped in 2022, TDTF lost 9.47%, its worst calendar year. Its deepest drop was 12%, from March 8 to November 3, 2022. It did not recover until April 3, 2025, about 29 months later. Anyone who had to sell shares during that stretch would have locked in losses. In the 2020 COVID crash, it fell 9.6% in under two weeks but recovered within about a month. The fund launched in 2011, so it has no 2008 record.
The trailing 12-month yield was 5.11% as of October 27, 2026, paid quarterly. Payouts follow inflation, so they can shrink when inflation cools. In the SEC example, costs come to $18 in the first year on $10,000. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want inflation-linked Treasury bonds with moderate rate sensitivity, kept near five years of duration through monthly rebalancing.
- Investors who want only US government credit: 99.6% of assets were Treasury TIPS as of July 31, 2026, with no corporate bonds.
- Retirees who are comfortable with a quarterly payout that changes with inflation. The trailing yield was 5.11% as of October 27, 2026.
Look elsewhere if
- Cost-focused investors: the 0.18% fee is above the 0.11% average for similar funds and SCHP's 0.03%.
- Anyone who needs steady prices: the fund fell 12% starting in March 2022 and took about 29 months to recover.
- Investors who want income that stays predictable from one quarter to the next, since TIPS payouts drop when inflation falls.
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 |
|---|---|---|---|---|---|
| TDTF this fund | 5.2 yrs | 0.18% | $1.04B | 0.0% | +4.8% |
| VGIT Vanguard Intermediate-Term Treasury ETF | 5.5 yrs | 0.03% | $48.41B | -0.2% | +4.5% |
| TIPX SPDR Bloomberg 1-10 Year TIPS ETF | 4.6 yrs | 0.15% | $1.91B | +0.5% | +4.8% |
| TIP iShares TIPS Bond ETF | 6.9 yrs | 0.18% | $14.60B | -0.3% | +4.1% |
| SCHP Schwab U.S. TIPS ETF | 7.2 yrs | 0.03% | $16.52B | -0.3% | +4.3% |
| SPIP SPDR Portfolio TIPS ETF | 7.4 yrs | 0.12% | $1.01B | -1.0% | +4.5% |
| TIPZ PIMCO Broad U.S. TIPS Index ETF | 7.4 yrs | 0.2% | $85.3M | -1.0% | +4.6% |
| GOVT iShares U.S. Treasury Bond ETF | 7.4 yrs | 0.05% | $43.55B | -0.5% | +3.8% |
Questions investors ask
Is TDTF good for retirement?
It may suit retirees who want some protection against inflation from US Treasury bonds. Its prices still swing, though. It lost 9.47% in 2022, and its deepest drop, 12%, took about 29 months to recover, until April 3, 2025. Its average annual return was 1.83% over five years and 3.21% over ten years as of December 31, 2025. It is usually one piece of a bond allocation rather than the whole thing.
Does TDTF pay monthly dividends?
No. TDTF pays quarterly. Over the 12 months to October 27, 2026, it paid $1.18 per share, a trailing yield of 5.11%. TIPS payouts include inflation adjustments, so distributions rise when inflation is high and can fall sharply, or stop for a while, when inflation cools or prices fall. The prospectus flags this as income risk. Retirees who rely on a fixed amount each quarter may find the payments uneven.
What's the difference between TDTF and TIPX?
Both own short- to intermediate-term TIPS. SPDR Bloomberg 1-10 Year TIPS ETF (TIPX) holds TIPS maturing within 10 years. Its average maturity is 4.6 years, compared with TDTF's 5.2, and its fee is 0.15% versus TDTF's 0.18%. TDTF instead aims for a duration of about five years and rebalances monthly. Over three years, both returned 4.8% a year as of October 27, 2026. Over one year, TIPX returned 0.5% and TDTF returned 0%.
What is TDTF's expense ratio?
TDTF's expense ratio is 0.18%, according to its prospectus filed February 25, 2026. In the SEC's standard example, $10,000 invested with a 5% yearly return costs $18 after one year, $106 after five years and $242 after ten. That ranks it 6th cheapest of 8 similar funds, whose average fee is 0.11%. iShares TIPS Bond ETF (TIP) also charges 0.18%. Schwab U.S. TIPS ETF (SCHP) charges 0.03% and holds longer TIPS.
Can TDTF lose money even though TIPS protect against inflation?
Yes. TIPS adjust for inflation, but their prices fall when real interest rates rise. Real rates are interest rates after inflation is taken out. TDTF lost 9.47% in 2022 as rates climbed, and its worst quarter, ending June 30, 2022, was a 4.68% loss. In the 2020 COVID crash it briefly fell 9.6%. The five-year duration target limits how much rate changes move the price, but it doesn't remove that risk.