(TDTF) FlexShares 5-Year Target - Ratings and Ratios

The FlexShares iBoxx 5‑Year Target Duration TIPS Index Fund (ticker TDTF) is a U.S.–based exchange‑traded fund that tracks an index of Treasury Inflation‑Protected Securities (TIPS) with an effective duration of roughly five years, positioning it to capture real‑yield movements while limiting interest‑rate sensitivity.

Key performance metrics include an expense ratio of 0.15 % and a distribution yield that currently sits near 2.2 % on a net‑asset‑value basis. Assets under management are approximately $250 million, and the fund’s turnover rate hovers around 15 % annually, reflecting a relatively passive rebalancing approach consistent with its index methodology.

Market‑driven variables that dominate the fund’s risk‑return profile are real Treasury yields, core CPI inflation expectations, and Federal Reserve policy stance. A decline in real yields—driven by heightened inflation concerns or dovish monetary policy—directly boosts the fund’s price, while rising real yields from tighter policy or strong economic growth exert downward pressure.

Liquidity indicators show an average daily trading volume of roughly 93 k shares, with the price oscillating between a 52‑week low of $22.55 and a high of $24.44. The fund’s beta of 0.77 relative to the Bloomberg U.S. Aggregate Index signals lower volatility, aligning with its defensive, inflation‑hedge objective.

Fundamental risk factors include the supply of new TIPS issuances, fiscal deficits that may affect Treasury issuance volumes, and the trajectory of the breakeven inflation rate. Monitoring the Treasury market’s real‑yield curve and CPI releases provides the most direct insight into the fund’s near‑term performance potential.