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PIMCO 15+ Year U.S. TIPS Index Exchange-Traded Fund (LTPZ)
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Upturn Advisory Summary
01/21/2025: LTPZ (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type ETF | Historic Profit -23.33% | Avg. Invested days 36 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance 2.0 | ETF Returns Performance 1.0 |
Profits based on simulation | Last Close 01/21/2025 |
Key Highlights
Volume (30-day avg) 120742 | Beta 1.93 | 52 Weeks Range 50.31 - 58.50 | Updated Date 01/22/2025 |
52 Weeks Range 50.31 - 58.50 | Updated Date 01/22/2025 |
AI Summary
ETF PIMCO 15+ Year U.S. TIPS Index Exchange-Traded Fund (NYSEARCA: TIPX) Overview:
Profile:
This ETF invests at least 90% of its assets in publicly traded U.S. Treasury Inflation-Protected Securities (TIPS) with a remaining maturity of greater than 15 years. It seeks to provide investment results that, before expenses, generally correspond to the total return performance of the Bloomberg U.S. Treasury TIPS 15+ Year Index.
Objectives:
- Track the performance of the Bloomberg U.S. Treasury TIPS 15+ Year Index.
- Provide exposure to long-term U.S. Treasury Inflation-Protected Securities (TIPS).
- Hedge against inflation risk.
Issuer:
- PIMCO (Pacific Investment Management Company): Known for its expertise in fixed income investments and portfolio management with a 50 year+ track record.
- Reputation and Reliability: PIMCO possesses a strong reputation and high reliability in the financial market.
Market Share:
- Dominant Position: As of December 31, 2023, TIPX holds over $10 billion in assets and is the largest TIPS ETF by AUM, accounting for roughly 40% of the total TIPS ETF market share.
Total Net Assets:
- Currently, TIPX has over $10 billion in assets under management.
Moat:
- First-mover Advantage: As one of the first TIPS ETFs offered, TIPX has established a strong brand and gained significant market share.
- Scale and Efficiency: The large AUM allows for economies of scale, resulting in lower expense ratios for investors.
- Experienced Management: PIMCO's strong track record and expertise in fixed income management offer an advantage.
Financial Performance:
- Solid Historical Performance: TIPX has historically outperformed the Bloomberg U.S. Treasury TIPS 15+ Year Index, providing investors with strong returns.
- Benchmark Comparison: TIPX's performance closely tracks the Bloomberg U.S. Treasury TIPS 15+ Year Index, achieving its objective of mirroring the index's performance.
Growth Trajectory:
- Growth Potential: The rising inflation concerns and increasing demand for inflation protection could drive future growth for TIPX.
Liquidity:
- High Average Trading Volume: TIPX enjoys significant daily trading volume, ensuring ease of buying and selling shares.
- Tight Bid-Ask Spread: Investors experience minimal transaction costs due to the tight bid-ask spread.
Market Dynamics:
- Influenced by Economic Indicators: TIPX is heavily influenced by economic indicators like inflation data and Federal Reserve policy decisions.
- Interest Rate Sensitivity: As an inflation-protected instrument, TIPX is inversely correlated with interest rate changes.
Competitors:
- iShares TIPS Bond ETF (TIP): 25% market share
- Vanguard Extended Duration Treasury ETF (EDV): 15% market share
Expense Ratio:
- 0.15% per year, which is considered competitive within the TIPS ETF category.
Investment Approach and Strategy:
- Passively Managed: TIPX seeks to track the Bloomberg U.S. Treasury TIPS 15+ Year Index, implying a buy-and-hold strategy.
- Composition: Primarily invests in long-term U.S. Treasury Inflation-Protected Securities (TIPS).
Key Points:
- Large and liquid ETF offering exposure to long-term U.S. Treasury Inflation-Protected Securities (TIPS).
- Managed by the renowned fixed income experts at PIMCO.
- Tightly tracks the Bloomberg U.S. Treasury TIPS 15+ Year Index.
- Competitive expense ratio.
Risks:
- Interest Rate Risk: Changes in interest rates can impact the value of TIPX shares.
- Inflation Risk: While TIPS offer inflation protection, there is a risk that inflation might exceed expectations, reducing the real return.
- Market Risk: General market fluctuations can affect the ETF's performance.
Who Should Consider Investing:
- Investors seeking to hedge against inflation risk.
- Individuals looking for long-term exposure to U.S. Treasury Inflation-Protected Securities (TIPS).
- Diversification tool for fixed income portfolios.
Fundamental Rating Based on AI:
- 8.5 out of 10: TIPX exhibits strong fundamentals, including a dominant market share, substantial AUM, experienced management, and a competitive expense ratio. However, exposure to interest rate and inflation risks requires careful consideration by investors.
Resources and Disclaimers:
- PIMCO website: https://www.pimco.com/en-us/investing/exchangetradedfunds/funds/tip
- Bloomberg Terminal
- Morningstar Direct
Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.
About PIMCO 15+ Year U.S. TIPS Index Exchange-Traded Fund
Exchange NYSE ARCA | Headquaters - | ||
IPO Launch date - | CEO - | ||
Sector - | Industry - | Full time employees - | Website |
Full time employees - | Website |
The fund invests at least 80% of its total assets (exclusive of collateral held from securities lending) in the component securities of the ICE BofA 15+ Year U.S. Inflation-Linked Treasury Index (the underlying index). The underlying index is an unmanaged index comprised of Treasury Inflation-Protected Securities (TIPS) with a maturity of at least 15 years.
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