Average Daily Volume
791.6K
Fund Overview
The iShares 0-5 Year TIPS Bond ETF (STIP) is designed to provide investors with exposure to short-term U.S. Treasury Inflation-Protected Securities (TIPS) with maturities of less than five years. TIPS are government bonds indexed to inflation, offering protection against rising consumer prices by adjusting the principal value based on changes in the Consumer Price Index (CPI). STIP aims to track the performance of the ICE 0-5 Year US Treasury Inflation-Linked Bond Index, providing a low-cost and liquid way to invest in inflation-protected fixed income. The fund is suitable for investors seeking to hedge against inflation while maintaining a short duration profile, reducing interest rate risk compared to longer-term TIPS funds.
- Asset Class
-
Bond
- Industry
-
N/A
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 8.71 %
- Currency Hedged
-
No
- Portfolio Turnover
-
2 %
- Dividend Date
-
Why Invest in the STIP ETF?
Potential Benefits
- Provides inflation protection by investing in TIPS, which adjust principal and interest payments based on CPI changes.
- Lower interest rate sensitivity compared to longer-term TIPS ETFs due to its short duration (0-5 years).
- Offers liquidity and transparency as an ETF, making it easy to trade throughout the market day.
- Competitive expense ratio compared to actively managed inflation-protected bond funds.
- Diversifies fixed income portfolios by adding an inflation-hedging component.
Potential Risks
- Inflation expectations may not materialize, reducing the relative benefit of TIPS compared to nominal bonds.
- Short-term interest rate fluctuations can still impact the fund's performance, albeit less than longer-duration funds.
- Deflationary periods could result in lower principal adjustments, potentially underperforming nominal Treasuries.
- Limited yield potential compared to higher-risk fixed income assets like corporate or high-yield bonds.
- Tax inefficiency: TIPS generate taxable income from inflation adjustments, even if not received as cash.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+0.5%
|
+0.4%
|
+0.1%
|
+0.9%
|
+0.1%
|
-0.4%
|
+0.2%
|
+0.1%
|
-1.0%
|
+0.3%
|
-
|
-
|
| 2025 |
+0.9%
|
+1.2%
|
+0.8%
|
+0.8%
|
-0.3%
|
+0.5%
|
+0.3%
|
+1.3%
|
-0.1%
|
+0.1%
|
+0.2%
|
0.0%
|
| 2024 |
+0.4%
|
-0.2%
|
+0.6%
|
-0.2%
|
+1.0%
|
+0.6%
|
+0.9%
|
+0.6%
|
+1.0%
|
-0.4%
|
+0.5%
|
-0.1%
|
| 2023 |
+0.8%
|
-0.5%
|
+2.0%
|
+0.1%
|
-0.6%
|
-0.1%
|
+0.4%
|
+0.2%
|
-0.2%
|
+0.4%
|
+1.1%
|
+1.0%
|
| 2022 |
-0.8%
|
+1.1%
|
-0.8%
|
-0.1%
|
+0.5%
|
-1.5%
|
+1.8%
|
-1.6%
|
-3.0%
|
+1.1%
|
+0.5%
|
-0.3%
|
| 2021 |
+0.5%
|
+0.2%
|
+0.6%
|
+0.9%
|
+0.7%
|
+0.1%
|
+1.3%
|
0.0%
|
0.0%
|
+0.7%
|
+0.1%
|
+0.5%
|
| 2020 |
+0.5%
|
+0.3%
|
-1.6%
|
+1.4%
|
+0.9%
|
+0.7%
|
+0.7%
|
+1.1%
|
-0.2%
|
-0.2%
|
+0.5%
|
+0.9%
|
| 2019 |
+0.8%
|
+0.1%
|
+0.8%
|
+0.5%
|
+0.5%
|
+0.6%
|
+0.1%
|
+0.5%
|
-0.1%
|
+0.2%
|
+0.1%
|
+0.7%
|
| 2018 |
-0.3%
|
0.0%
|
+0.5%
|
-0.1%
|
+0.3%
|
+0.2%
|
-0.2%
|
+0.5%
|
-0.2%
|
-0.5%
|
0.0%
|
+0.1%
|
| 2017 |
+0.5%
|
+0.1%
|
+0.2%
|
-0.1%
|
-0.1%
|
-0.5%
|
+0.3%
|
+0.2%
|
-0.1%
|
+0.2%
|
-0.2%
|
+0.1%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
No holdings data available.
Related ETFs: STIP vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
STIP tracks the ICE 0-5 Year US Treasury Inflation-Linked Bond Index, which includes inflation-protected U.S. Treasury securities with remaining maturities between one month and five years. The index is market-cap weighted, meaning larger bond issues have greater representation in the portfolio. The fund holds physical TIPS bonds rather than using derivatives, providing direct exposure to the underlying securities. STIP rebalances monthly to maintain alignment with its target index as bonds mature or fall outside the 0-5 year maturity window. This frequent rebalancing helps maintain consistent duration characteristics.
Frequently Asked Questions
How does STIP differ from regular Treasury bond ETFs?
STIP invests in Treasury Inflation-Protected Securities (TIPS), which adjust their principal value based on inflation, unlike regular Treasury bonds that pay fixed interest on an unchanging principal amount.
Is STIP a good investment during periods of high inflation?
Yes, STIP is designed to perform well during inflationary periods as its underlying securities' principal values increase with inflation, providing protection against rising prices.
What happens to STIP if there's deflation?
In deflationary periods, TIPS principal values can decrease, though they won't fall below their original par value at maturity. This could result in STIP underperforming nominal Treasury bonds during deflation.
How often does STIP pay dividends?
STIP typically makes monthly distributions of interest income from its TIPS holdings, though payment amounts vary based on current inflation adjustments and prevailing interest rates.
Can STIP lose value?
Yes, STIP can lose value if real interest rates rise significantly or if inflation expectations decline. However, its short duration helps limit interest rate risk compared to longer-term TIPS funds.
Industry Overview
The iShares 0-5 Year TIPS Bond ETF (STIP) operates in the inflation-protected bond segment of the fixed income market. TIPS are particularly relevant in economic environments where inflation expectations are rising, as they provide a hedge against purchasing power erosion. The short-duration focus of STIP makes it distinct from broader TIPS ETFs, appealing to investors who want inflation protection but wish to minimize interest rate risk. The fund is part of a growing category of fixed income ETFs that offer targeted exposure to specific bond market segments while maintaining the liquidity and transparency benefits of the ETF structure.
Alternative Comparison
Compared to broader TIPS ETFs like TIP (iShares TIPS Bond ETF), STIP offers reduced interest rate sensitivity due to its shorter duration focus, making it potentially more resilient during periods of rising rates. Versus VTIP (Vanguard Short-Term Inflation-Protected Securities ETF), STIP has a nearly identical investment objective but comes with a slightly higher expense ratio (0.03% for STIP vs. 0.04% for VTIP as of 2025). Both funds provide efficient exposure to short-term TIPS, with minor differences in index construction and portfolio management approaches. Investors prioritizing absolute lowest cost might prefer VTIP, while those already using iShares products for other allocations might favor STIP for platform consistency.
Issuer Overview
STIP is issued by iShares, a leading global provider of ETFs managed by BlackRock. iShares offers one of the most comprehensive fixed income ETF lineups, with products covering various durations, credit qualities, and specialized bond market segments. BlackRock's scale and expertise in index construction and ETF management contribute to STIP's tight tracking of its benchmark index and efficient portfolio management.
Conclusion
The iShares 0-5 Year TIPS Bond ETF (STIP) serves as a targeted tool for investors seeking inflation protection with limited interest rate risk. Its short-duration focus differentiates it from broader TIPS offerings, potentially making it more suitable for current market environments where both inflation concerns and rising rate risks exist. While not a complete fixed income solution, STIP can play a valuable role as part of a diversified bond allocation, particularly for investors with specific inflation-hedging needs in the short to intermediate term.
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