STPZ vs. TDTT

Last updated Jun 4, 2026

STPZ (PIMCO 1-5 Year US TIPS Index ETF) and TDTT (FlexShares iBoxx 3-Year Target Duration TIPS Index Fund) are both Inflation-Protected Bonds funds - STPZ tracks the ICE BofA US Inflation-Linked Treasury (1-5 Y) while TDTT tracks the iBoxx 3-Year Target Duration TIPS. Both are passively managed. Over the past 10 years, STPZ returned 2.89%/yr vs 3.11%/yr for TDTT. Their correlation of 0.82 suggests significant overlap in exposure. STPZ charges 0.20%/yr vs 0.18%/yr for TDTT.

Performance

STPZ vs. TDTT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PIMCO 1-5 Year US TIPS Index ETF (STPZ) and FlexShares iBoxx 3-Year Target Duration TIPS Index Fund (TDTT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with STPZ having a 1.79% return and TDTT slightly higher at 1.81%. Over the past 10 years, STPZ has underperformed TDTT with an annualized return of 2.89%, while TDTT has yielded a comparatively higher 3.11% annualized return.

STPZ

• 1D: -0.00%
• 1M: -0.09%
• YTD: 1.79%
• 6M: 1.77%
• 1Y: 4.51%
• 3Y*: 5.03%
• 5Y*: 2.90%
• 10Y*: 2.89%

TDTT

• 1D: 0.00%
• 1M: -0.06%
• YTD: 1.81%
• 6M: 1.77%
• 1Y: 4.65%
• 3Y*: 5.00%
• 5Y*: 2.85%
• 10Y*: 3.11%

*Multi-year figures are annualized to reflect compound growth (CAGR)

STPZ vs. TDTT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
STPZ PIMCO 1-5 Year US TIPS Index ETF	1.79%	6.40%	4.30%	4.28%	-4.49%	5.64%	5.44%	4.83%	0.04%	0.51%
TDTT FlexShares iBoxx 3-Year Target Duration TIPS Index Fund	1.81%	6.67%	3.96%	4.40%	-4.58%	5.49%	6.84%	5.74%	0.25%	0.43%

Correlation

The correlation between STPZ and TDTT is 0.87, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.87
Correlation (3Y) Calculated over the trailing 3-year period	0.92
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (10Y) Calculated over the trailing 10-year period	0.89
Correlation (All Time) Calculated using the full available price history since Sep 26, 2011	0.82

The correlation between STPZ and TDTT shifts across timeframes, from 0.82 (all time) to 0.94 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

STPZ vs. TDTT — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

STPZ

STPZ Risk / Return Rank: 82
STPZ Sharpe Ratio Rank: 76
STPZ Sortino Ratio Rank: 86
STPZ Omega Ratio Rank: 80
STPZ Calmar Ratio Rank: 86
STPZ Martin Ratio Rank: 81

TDTT

TDTT Risk / Return Rank: 84
TDTT Sharpe Ratio Rank: 78
TDTT Sortino Ratio Rank: 90
TDTT Omega Ratio Rank: 84
TDTT Calmar Ratio Rank: 88
TDTT Martin Ratio Rank: 82

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

STPZ vs. TDTT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PIMCO 1-5 Year US TIPS Index ETF (STPZ) and FlexShares iBoxx 3-Year Target Duration TIPS Index Fund (TDTT). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	STPZ	TDTT	Difference
Sharpe ratio Return per unit of total volatility	2.49	2.54	-0.06
Sortino ratio Return per unit of downside risk	3.94	4.20	-0.26
Omega ratio Gain probability vs. loss probability	1.49	1.51	-0.03
Calmar ratio Return relative to maximum drawdown	4.87	5.17	-0.31
Martin ratio Return relative to average drawdown	16.28	16.59	-0.31
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

STPZ vs. TDTT - Sharpe Ratio Comparison

The current STPZ Sharpe Ratio is 2.49, which is comparable to the TDTT Sharpe Ratio of 2.54. The chart below compares the historical Sharpe Ratios of STPZ and TDTT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	STPZ	TDTT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.49	2.54	-0.06
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.89	0.78	+0.11
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.97	0.92	+0.05
Sharpe Ratio (All Time) Calculated using the full available price history	0.90	0.69	+0.21

Drawdowns

STPZ vs. TDTT - Drawdown Comparison

The maximum STPZ drawdown since its inception was -6.77%, roughly equal to the maximum TDTT drawdown of -6.97%. Use the drawdown chart below to compare losses from any high point for STPZ and TDTT.

Drawdown Indicators

	STPZ	TDTT	Difference
Max Drawdown Largest peak-to-trough decline	-6.77%	-6.97%	+0.20%
Max Drawdown (1Y) Largest decline over 1 year	-0.93%	-0.90%	-0.03%
Max Drawdown (3Y) Largest decline over 3 years	-1.35%	-1.53%	+0.18%
Max Drawdown (5Y) Largest decline over 5 years	-6.70%	-6.97%	+0.27%
Max Drawdown (10Y) Largest decline over 10 years	-6.77%	-6.97%	+0.20%
Current Drawdown Current decline from peak	-0.11%	-0.14%	+0.03%
Average Drawdown Average peak-to-trough decline	-1.31%	-1.60%	+0.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.28%	0.28%	0.00%

Volatility

STPZ vs. TDTT - Volatility Comparison

PIMCO 1-5 Year US TIPS Index ETF (STPZ) and FlexShares iBoxx 3-Year Target Duration TIPS Index Fund (TDTT) have volatilities of 0.46% and 0.46%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	STPZ	TDTT	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.46%	0.46%	0.00%
Volatility (6M) Calculated over the trailing 6-month period	1.20%	1.21%	-0.01%
Volatility (1Y) Calculated over the trailing 1-year period	1.83%	1.85%	-0.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.29%	3.67%	-0.38%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.98%	3.38%	-0.40%

STPZ vs. TDTT - Expense Ratio Comparison

STPZ has a 0.20% expense ratio, which is higher than TDTT's 0.18% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

STPZ vs. TDTT - Dividend Comparison

STPZ's dividend yield for the trailing twelve months is around 4.10%, less than TDTT's 4.54% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
STPZ PIMCO 1-5 Year US TIPS Index ETF	4.10%	3.65%	1.97%	1.63%	5.88%	3.65%	1.86%	1.76%	2.23%	1.51%	0.65%	0.49%
TDTT FlexShares iBoxx 3-Year Target Duration TIPS Index Fund	4.54%	4.52%	4.01%	3.88%	6.97%	4.53%	1.15%	1.91%	2.48%	1.88%	1.01%	0.00%

Frequently Asked Questions

Can I hold both STPZ and TDTT in my portfolio?

STPZ and TDTT have a correlation of 0.87, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, STPZ or TDTT?

TDTT has higher volatility (0.46%) compared to STPZ (0.46%). In terms of maximum drawdown, STPZ dropped -6.77% vs TDTT's -6.97%.

Which ETF is better, STPZ or TDTT?

On 10-year performance, TDTT leads with 3.11% vs 2.89% for STPZ. On fees, TDTT is cheaper at 0.18% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, STPZ or TDTT?

Over the 10-year period, TDTT has performed better with a 3.11% return vs 2.89%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, STPZ or TDTT?

TDTT is cheaper with a 0.18% expense ratio, compared with 0.20% for STPZ.

Which ETF pays a higher dividend yield, STPZ or TDTT?

TDTT has the higher dividend yield at 4.54%, compared with 4.10% for STPZ.

What is the main difference between STPZ and TDTT?

STPZ tracks ICE BofA US Inflation-Linked Treasury (1-5 Y), while TDTT tracks iBoxx 3-Year Target Duration TIPS. They also come from different issuers: PIMCO and Northern Trust. Their fees differ too: 0.20% for STPZ and 0.18% for TDTT.

Which has better risk-adjusted returns?

TDTT currently has the higher Sharpe Ratio (2.54 vs 2.49), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.