PIMCO Broad U.S. TIPS Index ETF

PIMCO Broad U.S. TIPS Index ETF (TIPZ) tracks the ICE BofA US Inflation-Linked Treasury Index. That index holds U.S. Treasury Inflation-Protected Securities (TIPS), government bonds whose value rises and falls with the Consumer Price Index. The fund's 0.20% expense ratio ranks last on cost among eight comparable funds, which average 0.11%. With $85.3 million in net assets as of June 30, 2026, it is also the smallest of the group.

• Over the year to Oct 27, 2026, TIPZ returned -1.0%, 6th of 8 among similar funds.
• Its 5-year annualized return was -0.4% and its 10-year +2.2%.
• In the 2020 COVID crash it fell 10.5% and regained its old high 1.3 months after the low.
• Its worst full calendar year was 2022 (-12.7%); its best was 2011 (+13.9%).
• The deepest fall in its price history was 15.7% (Nov 9, 2021 to Oct 10, 2022), not yet recovered.

As of Jun 30, 2026, the fund held 45 securities; the ten largest made up 50.44% of assets.

The bonds mature in 7.4 years on average (weighted by size), with an average coupon of 1.27%.

• Over the three months to Jun 30, 2026, investors withdrew a net $161K (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +1.08%, +0.28%, -0.52%.

The fund follows the ICE BofA US Inflation-Linked Treasury Index, which holds only TIPS. These are U.S. Treasury bonds whose principal and interest payments adjust with official inflation, as measured by the Consumer Price Index. To be included, an issue needs at least $1 billion outstanding and at least one year left before it matures. The index is capitalization-weighted, so larger issues get larger weights. Its makeup is updated monthly. As of September 30, 2026, it held 48 TIPS issues with an average maturity of 7.26 years.

PIMCO does not buy every bond in the index. It uses representative sampling: at least 80% of assets go into index bonds, sometimes in different proportions, so the fund may track the index less closely than a full copy would. The prospectus allows derivatives such as futures and swaps, plus forward purchases and buy-backs. As of June 30, 2026, the fund held 45 issues, 99.4% of assets were in Treasury inflation-indexed notes and bonds, and it had no derivatives.

Returns come from interest plus price gains, which usually happen when real interest rates (rates after inflation) fall or when inflation rises. When real rates rise, prices fall. Portfolio turnover was 142%, which is high for an index fund. Trading costs are not included in the expense ratio.

• TIPZ charges 0.2% a year, versus an average of 0.11% 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).

TIPZ holds only U.S. Treasury bonds whose principal adjusts with the Consumer Price Index, so it is built to protect against inflation more than to provide a smooth ride.

TIPZ could help a bond allocation keep its buying power when prices rise. It is not a shelter from every shock. Its price history does not cover 2008. In the 2020 COVID crash it fell 10.5% in under two weeks, then recovered by April 28, 2020. When rates surged in 2022 it lost 12.74%, its worst calendar year, and fell 15.7% from its November 2021 high. As of October 27, 2026, it had not regained that peak. Someone forced to sell in late 2022 would have locked in that loss. The trailing 12-month yield was 5.58% as of October 27, 2026, paid quarterly. TIPS income moves with inflation, so it can vary widely. In the SEC's standard example, the 0.20% fee costs $20 on $10,000 in year one. 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).