TDTT vs. TLTE

Last updated Jun 3, 2026

TDTT (FlexShares iBoxx 3-Year Target Duration TIPS Index Fund) and TLTE (FlexShares Morningstar Emerging Markets Factor Tilt Index) are both exchange-traded funds - TDTT is a Inflation-Protected Bonds fund tracking the iBoxx 3-Year Target Duration TIPS, while TLTE is a Foreign Large Cap Equities fund tracking the Morningstar Emerging Markets Factor Tilt Index. Both are passively managed. Over the past 10 years, TDTT returned 3.11%/yr vs 9.80%/yr for TLTE. At a 0.11 correlation, their price movements are largely independent. TDTT charges 0.18%/yr vs 0.59%/yr for TLTE.

Performance

TDTT vs. TLTE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares iBoxx 3-Year Target Duration TIPS Index Fund (TDTT) and FlexShares Morningstar Emerging Markets Factor Tilt Index (TLTE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TDTT achieves a 1.81% return, which is significantly lower than TLTE's 26.04% return. Over the past 10 years, TDTT has underperformed TLTE with an annualized return of 3.11%, while TLTE has yielded a comparatively higher 9.80% annualized return.

TDTT

• 1D: -0.04%
• 1M: -0.12%
• YTD: 1.81%
• 6M: 1.88%
• 1Y: 4.48%
• 3Y*: 5.00%
• 5Y*: 2.90%
• 10Y*: 3.11%

TLTE

• 1D: 0.76%
• 1M: 7.50%
• YTD: 26.04%
• 6M: 28.79%
• 1Y: 50.45%
• 3Y*: 22.88%
• 5Y*: 8.09%
• 10Y*: 9.80%

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

TDTT vs. TLTE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
TLTE FlexShares Morningstar Emerging Markets Factor Tilt Index	26.04%	30.21%	3.53%	13.62%	-17.31%	4.79%	12.10%	14.51%	-17.44%	32.82%

Correlation

The correlation between TDTT and TLTE is 0.07, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.07
Correlation (3Y) Calculated over the trailing 3-year period	0.14
Correlation (5Y) Calculated over the trailing 5-year period	0.14
Correlation (10Y) Calculated over the trailing 10-year period	0.11
Correlation (All Time) Calculated using the full available price history since Oct 3, 2012	0.11

Return for Risk

TDTT vs. TLTE — Risk / Return Rank

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

TDTT

TDTT Risk / Return Rank: 81
TDTT Sharpe Ratio Rank: 73
TDTT Sortino Ratio Rank: 87
TDTT Omega Ratio Rank: 80
TDTT Calmar Ratio Rank: 86
TDTT Martin Ratio Rank: 78

TLTE

TLTE Risk / Return Rank: 80
TLTE Sharpe Ratio Rank: 83
TLTE Sortino Ratio Rank: 79
TLTE Omega Ratio Rank: 82
TLTE Calmar Ratio Rank: 76
TLTE Martin Ratio Rank: 78

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.

TDTT vs. TLTE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares iBoxx 3-Year Target Duration TIPS Index Fund (TDTT) and FlexShares Morningstar Emerging Markets Factor Tilt Index (TLTE). 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.

	TDTT	TLTE	Difference
Sharpe ratio Return per unit of total volatility	2.43	2.76	-0.33
Sortino ratio Return per unit of downside risk	4.00	3.59	+0.41
Omega ratio Gain probability vs. loss probability	1.49	1.51	-0.02
Calmar ratio Return relative to maximum drawdown	4.82	3.95	+0.86
Martin ratio Return relative to average drawdown	15.48	15.56	-0.08
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TDTT vs. TLTE - Sharpe Ratio Comparison

The current TDTT Sharpe Ratio is 2.43, which is comparable to the TLTE Sharpe Ratio of 2.76. The chart below compares the historical Sharpe Ratios of TDTT and TLTE, 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

	TDTT	TLTE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.43	2.76	-0.33
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.79	0.48	+0.31
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.92	0.53	+0.39
Sharpe Ratio (All Time) Calculated using the full available price history	0.69	0.35	+0.34

Drawdowns

TDTT vs. TLTE - Drawdown Comparison

The maximum TDTT drawdown since its inception was -6.97%, smaller than the maximum TLTE drawdown of -44.21%. Use the drawdown chart below to compare losses from any high point for TDTT and TLTE.

Drawdown Indicators

	TDTT	TLTE	Difference
Max Drawdown Largest peak-to-trough decline	-6.97%	-44.21%	+37.24%
Max Drawdown (1Y) Largest decline over 1 year	-0.90%	-13.04%	+12.14%
Max Drawdown (3Y) Largest decline over 3 years	-1.53%	-17.43%	+15.90%
Max Drawdown (5Y) Largest decline over 5 years	-6.97%	-33.51%	+26.54%
Max Drawdown (10Y) Largest decline over 10 years	-6.97%	-44.21%	+37.24%
Current Drawdown Current decline from peak	-0.14%	0.00%	-0.14%
Average Drawdown Average peak-to-trough decline	-1.60%	-12.16%	+10.56%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.28%	3.31%	-3.03%

Volatility

TDTT vs. TLTE - Volatility Comparison

The current volatility for FlexShares iBoxx 3-Year Target Duration TIPS Index Fund (TDTT) is 0.46%, while FlexShares Morningstar Emerging Markets Factor Tilt Index (TLTE) has a volatility of 7.91%. This indicates that TDTT experiences smaller price fluctuations and is considered to be less risky than TLTE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TDTT	TLTE	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.46%	7.91%	-7.45%
Volatility (6M) Calculated over the trailing 6-month period	1.22%	16.03%	-14.81%
Volatility (1Y) Calculated over the trailing 1-year period	1.85%	18.36%	-16.51%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.67%	16.82%	-13.15%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.38%	18.40%	-15.02%

TDTT vs. TLTE - Expense Ratio Comparison

TDTT has a 0.18% expense ratio, which is lower than TLTE's 0.59% expense ratio.

Dividends

TDTT vs. TLTE - Dividend Comparison

TDTT's dividend yield for the trailing twelve months is around 4.54%, more than TLTE's 2.98% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
TLTE FlexShares Morningstar Emerging Markets Factor Tilt Index	2.98%	3.76%	3.73%	4.03%	4.42%	3.21%	1.95%	3.23%	3.02%	2.12%	2.30%	2.00%

Frequently Asked Questions

Can I hold both TDTT and TLTE in my portfolio?

TDTT and TLTE have a correlation of 0.07, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TDTT or TLTE?

TLTE has higher volatility (7.91%) compared to TDTT (0.46%). In terms of maximum drawdown, TDTT dropped -6.97% vs TLTE's -44.21%.

Which ETF is better, TDTT or TLTE?

On 10-year performance, TLTE leads with 9.80% vs 3.11% for TDTT. On fees, TDTT is cheaper at 0.18% per year. On volatility, TDTT has been the lower-risk option at 0.46%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TDTT or TLTE?

Over the 10-year period, TLTE has performed better with a 9.80% return vs 3.11%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TDTT or TLTE?

TDTT is cheaper with a 0.18% expense ratio, compared with 0.59% for TLTE.

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

TDTT has the higher dividend yield at 4.54%, compared with 2.98% for TLTE.

What is the main difference between TDTT and TLTE?

TDTT is categorized as Inflation-Protected Bonds, while TLTE is Foreign Large Cap Equities. TDTT tracks iBoxx 3-Year Target Duration TIPS, while TLTE tracks Morningstar Emerging Markets Factor Tilt Index. Their fees differ too: 0.18% for TDTT and 0.59% for TLTE.

Which has better risk-adjusted returns?

TLTE currently has the higher Sharpe Ratio (2.76 vs 2.43), 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.