PIMCO 15+ Year US TIPS ETF

LTPZ tracks a market-value-weighted index of long-term US Treasury Inflation Protected Securities.

LTPZ ETF is designed to track an index of long-term TIPS or Treasury Inflation-Protected Securities. Stricter immigration controls, tariffs, and increasing money supply could drive another inflation wave, making long-term TIPS a valuable tool in the future. LTPZ ETF excels in low-interest, high-inflation scenarios, offering solid income during stagflation but unsuitable for steady income seekers.

LTPZ: A Nuanced Stagflation Hedge

Treasury Inflation-Protected Securities, a.k.a TIPS funds, have had mixed results due to duration weakness during a rate hike cycle, but long-duration TIPS may make sense now. PIMCO 15+ Year U.S. TIPS Index Exchange-Traded Fund ETF targets long-maturity TIPS exposure, providing inflation protection and real returns. The LTPZ ETF offers a valuable hedge against inflation, but may be more volatile and lack diversification compared to shorter-maturity TIPS funds.

LTPZ: The Time Is Now (Maybe)

Long-term Treasury Inflation-Protected Securities (TIPS) are underpriced and a better component of a 60/40 portfolio than unhedged Treasuries. Simulated historical returns suggest long-term TIPS are a powerful hedge against high inflation and long-term bear markets in equities. The next two decades are likely to see higher inflation and an increased probability of a long-term bear market in equities.

LTPZ: Long-Term TIPS For The Long Run

The PIMCO 15+ Year U.S. TIPS Index is highly sensitive to changes in real interest rate expectations, and surging stocks have undermined rate cut bets, weighing on the ETF.

LTPZ: The Stock Market Bubble Raises The Stakes For TIPS

SPDR Portfolio TIPS ETF

Vanguard Short-Term Inflation-Protected Securities ETF

Investors looking to adjust their allocations may want to add Treasury Inflation-Protected Securities, or TIPS, to their fixed income portfolio. At least since the CPI notched a 9% year-over-year increase in the summer of 2022, inflation has been back on investors' minds.

Worried About Inflation? Consider TIPS ETFs

Both nominal and real rates are down across the curve. The catch is that the curve now embeds some very aggressive Fed easing assumptions. Buying long-duration TIPS doesn't offer a particularly attractive risk/reward here.

LTPZ: More Risk Than Reward Further Out On The TIPS Curve

The PIMCO 15+ Year U.S. TIPS Index Exchange-Traded Fund offers a great opportunity to profit from a potential decrease in US real (inflation-adjusted) borrowing costs. The LTPZ offer a 2% real yield in addition to payments tied to CPI, and will rise in price if long-term interest rate expectations fall relative to inflation expectations. The LTPZ has significant upside potential if real bond yields decline, which is likely due to the US government's rising debt servicing costs.

LTPZ: TIPS Have The Best Risk-Reward Outlook I Have Ever Seen

Schwab US TIPS ETF

PIMCO 1-5 Year US TIPS ETF

I'm not even retired and I've been buying long-term inflation-protected U.S. Treasury bonds in my 401(k) with both hands.

These bonds, perfect for retirees, are paying twice their historic average

US inflation rates reached 40-year highs in June 2022, prompting investors to move into Treasury Inflation Protected Securities (TIPS) funds. The article reviews two such ETFs: PIMCO 1-5 Year U.S. TIPS Index ETF and PIMCO 15+ Year U.S. TIPS Index ETF.  TIPS are also compared against other inflation hedges. With High-Yield Corporates outperforming TIPS since 2001 and stocks providing higher returns long-term, I give both STPZ and LTPZ Sell ratings.

Short Or Long, TIPS ETFs Are A Bust

The PIMCO 15+ Year U.S. TIPS Index Exchange-Traded Fund offers investors exposure to long-term inflation-linked bonds that stand to benefit from any decline in real interest rate expectations. Real GDP growth should average little more than zero over the coming years even if the unemployment rate remains historically low.

LTPZ: Real Yields May Need To Move Back Below Zero To Prevent A Fiscal Meltdown

The PIMCO 15+ Year U.S. TIPS Index Exchange-Traded Fund (LTPZ) offers investors exposure to long-term inflation-linked bond yields, with average maturity of 22 years. The real yield is now 1.7% and monetary policy conditions are turning increasingly favorable.

LTPZ: Long-Dated Linkers Look Good For 2023

LTPZ invests in long-term treasury inflation-protected securities. Skyrocketing inflation has led to significant dividend growth for the fund, with LTPZ currently yielding 9.0%.

LTPZ: Long-Term TIPS Fund, Fully-Covered 9.0% Dividend Yield

In 2022, LTPZ recorded a significant hike in its annual average yield, primarily due to higher interest income as well as huge decline in its market price. In the absence of another major inflation, the utility of holding this TIPS fund will decrease dramatically.

LTPZ: Rising Yield, Increasing Risk

LTPZ invests in long-term treasury inflation-protected securities. Although the fund is a good inflation hedge, and has performed comparatively well for years, it has an Achilles' heel.

LTPZ: Good Inflation Hedge, But Excessively Risky, Not A Buy

My "cocktail of deflationary events" thesis has been playing out, pushing the PIMCO 15+ Year U.S. TIPS fund to its worst drawdown since March 2020. A more hawkish Fed and the winding down of fiscal stimulus have probably marked the peak in inflation expectations and in LTPZ price.

LTPZ: Selloff Is Probably Not Over Yet

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At the November FOMC meeting, the Fed officially announced that it would begin tapering its bond purchase program, starting in mid-November. When the Fed began tapering its QE3 program over the course of 2014, the coupon supply from the U.S. Treasury was stable, leading to an increase in net supply takedown from the private market.

Tapering Impact On Treasury Supply

After calling for an imminent drop in the 10-year yield from 1.68%, I now present another trade that I believe to be overcrowded.

LTPZ: Inflation Is An Overcrowded Trade

Many investors are concerned about inflation, and with good reason.

LTPZ: Moderate Downside Protection And Inflation Hedge, Strong 6.5% Dividend Yield

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We have highlighted few ETFs that could prove compelling choices amid the backdrop of economic recovery and concerns over the upcoming tax hike and surging yields.

Worried About Tax Hike and Surging Yields? 5 ETFs to Bet On

With inflation becoming a concern among many investors, a look at TIPS may be warranted.

LTPZ: Getting Hit By Rising Yields, Lack Of Official Inflation

Most investors would likely be surprised to learn that long-term TIPS have been the best performing of the major asset classes in 2020. In this article, I explore why the PIMCO 15+ Year U.S. TIPS fund has done well, and why it may be a valuable addition to a portfolio.

PIMCO 15+ Year U.S. TIPS Fund: An Under-The-Radar Winner

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News for PIMCO 15+ Year US TIPS ETF ETF (LTPZ)