At a glance
TDTT charges 0.18% a year, above the 0.09% average of the 7 funds most like it (the 7th cheapest of 8). It has $2.55B in assets, the 5th largest of that group; it paid 4.89% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +1.4% with distributions reinvested, 6th of those 8 funds; over three years it returned +4.9% a year. At its worst it fell 6.6% in the 2020 crash (S&P 500: 33.7%) and 6.9% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 3 months and 21 months after the lows. Its ten largest positions make up 65.6% of the fund, out of 23 in all.
The short version
FlexShares iBoxx 3-Year Target Duration TIPS Index Fund (TDTT) holds Treasury Inflation-Protected Securities (TIPS). These are US government bonds whose principal and interest rise with consumer prices. The fund keeps their average duration near three years. That short focus has kept its losses small: its deepest drop since its 2011 launch was 6.9%. The drawback is cost. Its 0.18% expense ratio ranks 7th of 8 similar funds, while VTIP and STIP charge 0.03%.
Price history
The interactive chart needs JavaScript.
TDTT +1.4% 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 | |
|---|---|---|---|---|---|---|
| TDTT official prospectus, to Dec 31, 2025 | — | +6.50% | — | +3.09% | +3.14% | — |
| Bloomberg US Aggregate Bond Index index, same period | — | +7.30% | — | -0.36% | +2.01% | — |
| Bloomberg US Govt Inflation Linked110Yr Index index, same period | — | +7.37% | — | +2.52% | +3.35% | — |
| I Boxx3Year Target Duration TIPS Index index, same period | — | +6.65% | — | +3.25% | +3.30% | — |
| TDTT price data to Oct 27, 2026 | +1.4% | +1.4% | +4.9% | +2.3% | +3.0% | +2.1% |
- Over the year to Oct 27, 2026, TDTT returned +1.4%, 6th of 8 among similar funds.
- Its 5-year annualized return was +2.3% and its 10-year +3.0%.
- In the 2020 COVID crash it fell 6.6% and regained its old high 2.5 months after the low.
- Its worst full calendar year was 2022 (-4.5%); its best was 2020 (+6.8%).
- The deepest fall in its price history was 6.9% (Mar 11, 2022 to Sep 27, 2022), recovered by Jun 18, 2024.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +1.4% | — |
| 2025 | +6.7% | +6.50% |
| 2024 | +4.0% | +3.96% |
| 2023 | +4.3% | +4.54% |
| 2022 | -4.5% | -4.57% |
| 2021 | +5.5% | +5.41% |
| 2020 | +6.8% | +6.97% |
| 2019 | +5.8% | +5.61% |
| 2018 | +0.3% | +0.13% |
| 2017 | +0.4% | +0.52% |
| 2016 | +3.2% | +2.93% |
| 2015 | -0.5% | — |
| 2014 | -1.7% | — |
| 2013 | -2.2% | — |
| 2012 | +2.8% | — |
| 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 | Lost 2.6% over that stretch · deepest drop along the way 6.6%, back to its old high 2.5 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 5.2% over that stretch · deepest drop along the way 6.9%, back to its old high 20.7 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.8800 | |
| 2025 | $1.1000 | +15.8% |
| 2024 | $0.9500 | +5.6% |
| 2023 | $0.9000 | -45.8% |
| 2022 | $1.6600 | +39.5% |
| 2021 | $1.1900 | +296.7% |
| 2020 | $0.3000 | -38.0% |
| 2019 | $0.4837 | -19.4% |
| 2018 | $0.6000 | +33.3% |
| 2017 | $0.4500 | +80.0% |
| 2016 | $0.2500 | +18.7% |
| 2014 | $0.2106 | +321.2% |
| 2013 | $0.0500 | -80.0% |
| 2012 | $0.2500 |
What's inside
As of Jul 31, 2026, the fund held 23 securities; the ten largest made up 65.57% of assets.
| Holding | Weight | |
|---|---|---|
| United States of America Bonds and notes | 11.90% | |
| United States of America Bonds and notes | 11.18% | |
| United States of America Bonds and notes | 11.18% | |
| United States of America Bonds and notes | 9.87% | |
| United States of America Bonds and notes | 3.67% | |
| United States of America Bonds and notes | 3.63% | |
| United States of America Bonds and notes | 3.60% | |
| United States of America Bonds and notes | 3.58% | |
| United States of America Bonds and notes | 3.52% | |
| United States of America Bonds and notes | 3.44% | |
| United States of America Bonds and notes | 3.44% | |
| United States of America Bonds and notes | 3.41% | |
| United States of America Bonds and notes | 3.36% | |
| United States of America Bonds and notes | 3.32% | |
| United States of America Bonds and notes | 3.19% |
By country
United States 99.55%By issuer
US Treasury 99.55%The bonds mature in 2.9 years on average (weighted by size), with an average coupon of 1.35%.
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 $37.1M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -0.05%, -0.39%, +0.13%.
How it works
The fund tracks the iBoxx 3-Year Target Duration TIPS Index. S&P Dow Jones Indices runs the index and is independent of the fund and its adviser, Northern Trust Investments (NTI). The index holds publicly issued TIPS that mature in at least one year and less than ten years from each rebalancing date. Their payments are linked to the Consumer Price Index for All Urban Consumers (CPI-U) and backed by the US government. As of December 31, 2025, the index held 23 TIPS.
The index does not weight bonds by size. The provider sets weights so the average duration stays near three years. Duration measures how much a bond's price reacts to interest-rate changes. The index rebalances monthly and the fund follows, which helps explain its 86% portfolio turnover. As of July 31, 2026, the fund held 23 positions with an average maturity of 2.9 years. Its four largest TIPS each made up roughly 10% to 12% of assets, and the top 10 held about 66%.
NTI aims to replicate the index by holding nearly all of its bonds in similar proportions. It may use a representative sample instead when full replication isn't practical. At least 80% of assets go to index securities. Up to 20% can sit in cash, money market funds, futures or other securities. The fund may lend up to one-third of its assets, and it makes no defensive moves when markets fall.
What it really costs
- TDTT charges 0.18% a year, versus an average of 0.09% for the similar funds below (7th 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 |
|---|---|---|---|---|
| TDTT | $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
It holds short-duration US Treasury TIPS whose principal adjusts with the CPI-U, so it targets inflation protection with modest price swings.
TDTT could add inflation protection without large price swings. Its deepest drop was 6.9%, from March 11 to September 27, 2022. Rising real interest rates pushed TIPS prices down even while inflation ran high. Recovery took about 20.7 months, until June 18, 2024. In the 2020 COVID crash it fell 6.6% but was back by June 1, 2020. Its worst calendar year was 2022, at -4.57%. It launched after 2008, so it has no record from that crisis. Selling in a bad year could lock in a loss, though past losses were shallow.
Over the 12 months to October 27, 2026, it yielded 4.89%, paid quarterly. The payouts rise and fall with inflation. It costs 0.18% a year, compared with 0.03% for VTIP and STIP. 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 US Treasury bonds tied to inflation, with an average maturity of about 2.9 years and a deepest drop of 6.9% since launch.
- Retirees looking for a holding that moved almost independently of stocks: its one-year beta was 0.01 as of October 27, 2026.
- People who like an index that holds duration near three years and rebalances monthly, rather than holding every TIPS in a fixed maturity range.
Look elsewhere if
- Cost-focused investors: the 0.18% expense ratio ranks 7th of 8 similar funds, compared with 0.03% for VTIP and STIP.
- Anyone who needs steady income: TIPS payouts shrink when inflation cools, so the 4.89% trailing yield, paid quarterly, can fall.
- Investors who expect gains whenever inflation is high: in 2022, rising real rates caused a 6.9% drop that took about 21 months to recover.
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 |
|---|---|---|---|---|---|
| TDTT this fund | 2.9 yrs | 0.18% | $2.55B | +1.4% | +4.9% |
| STPZ PIMCO 1-5 Year US TIPS Index Exchange-Trade… | 2.9 yrs | 0.2% | $526.5M | +1.4% | +4.8% |
| PBTP Invesco 0-5 Yr US TIPS ETF | 2.4 yrs | 0.07% | $115.8M | +2.1% | +5.0% |
| VTIP Vanguard Short-Term Inflation-Protected Sec… | 2.4 yrs | 0.03% | $71.01B | +2.8% | +5.3% |
| STIP iShares 0-5 Year TIPS Bond ETF | 2.4 yrs | 0.03% | $15.91B | +2.1% | +4.8% |
| SHY iShares 1-3 Year Treasury Bond ETF | 1.9 yrs | 0.15% | $25.91B | +1.7% | +3.9% |
| VGSH Vanguard Short-Term Treasury ETF | 1.9 yrs | 0.03% | $39.20B | +2.2% | +4.2% |
| TIPX SPDR Bloomberg 1-10 Year TIPS ETF | 4.6 yrs | 0.15% | $1.91B | +0.5% | +4.8% |
Questions investors ask
Is TDTT a good inflation hedge for retirement?
It hedges inflation partly, not perfectly. TDTT holds US Treasury TIPS, whose principal and interest are linked to the CPI-U. Prices still move with real interest rates. In 2022, while inflation was high, the fund lost 4.57% because real rates rose. Its short duration of about three years kept that loss smaller than longer bond funds might see. Its income also changes with inflation, so it can fall if inflation slows or prices decline.
What's the difference between TDTT and VTIP?
Both hold short-term TIPS, but VTIP costs less and is much larger. VTIP charges 0.03% compared with TDTT's 0.18%. VTIP had about $71.0 billion in net assets as of June 30, 2026, against TDTT's $2.55 billion as of July 31, 2026. VTIP's average maturity is 2.4 years, compared with TDTT's 2.9. One-year price returns were 2.5% for VTIP and 1.4% for TDTT as of late October 2026. PIMCO's STPZ, at 0.20%, has the closest maturity profile.
Does TDTT pay monthly dividends?
No. TDTT pays distributions quarterly. Over the 12 months ending October 27, 2026, it paid $1.15 per share, a trailing yield of 4.89%. The amount is not fixed. TIPS interest and principal adjust with the CPI-U, so payouts tend to rise when inflation is high and shrink when it cools. The prospectus warns that income may decline if inflation falls, prices decline (deflation), or inflation expectations change.
What is TDTT's expense ratio?
TDTT's expense ratio is 0.18%, according to its prospectus filed February 25, 2026. The SEC's standard example assumes $10,000 invested with a 5% annual return. On that basis, costs would total about $18 after one year, $60 after three, $106 after five and $242 after ten. That is above the 0.09% average for similar funds, and well above VTIP and STIP at 0.03% each. PIMCO's STPZ is slightly higher at 0.20%.
How has TDTT performed over 10 years?
TDTT returned 3.14% a year on average over the 10 years ending December 31, 2025, according to its prospectus. It returned 3.09% a year over five years and 6.50% over one. Its index returned 3.30% a year over 10 years, and the broader Bloomberg US Government Inflation-Linked 1-10 Year Index returned 3.35%. Based on price, the fund's 10-year annualized return was 3.0% as of October 27, 2026, and its one-year return was 1.4%.