STIP ETF: What Is It? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
The iShares 0-5 Year TIPS Bond ETF (STIP) holds only short-term Treasury Inflation-Protected Securities with maturities under five years. Its short duration lowers interest rate risk, and its monthly dividends aim to hedge against inflation. The fee gap versus SCHP and TIP is the key selection criterion.
SubscribeWhat Is the iShares 0-5 Year TIPS Bond ETF?
This is a short-term inflation-protection bond ETF that tracks US Treasury Inflation-Protected Securities with maturities under five years. It holds most of its assets in US Treasuries, and because the principal is linked to a price index, its value adjusts as inflation rises.
It suits conservative bond investors who want to reduce interest rate risk while still holding a tool for inflation protection.
It is a passively managed (index-tracking) ETF run by BlackRock (iShares).
How Do You Invest in the iShares 0-5 Year TIPS Bond ETF?
| Item | Details |
|---|---|
| Tracking Index | US short-term inflation-protected Treasury index |
| Management Style | Passive (index-tracking) |
| Rebalancing Frequency | Monthly |
| Dividend Frequency | Monthly dividends |
| Total Expense Ratio | 0.03% |
The fund holds US Treasury Inflation-Protected Securities with maturities under five years on a market-cap-weighted basis, tracking the inflation-linked performance of the short end of the curve. Thanks to its short duration, its price sensitivity to interest rate changes tends to be lower than that of a typical TIPS ETF.
- Low interest rate sensitivity thanks to short duration
- A low-cost tool for hedging inflation
iShares 0-5 Year TIPS Bond ETF Size and Costs (AUM and Management Fee)
Assets under management (AUM) stand at $16.9B, and the total expense ratio is 0.03% per year.
Compared with SCHP and TIP in the same category, its duration is shorter, so its price volatility tends to be lower when interest rates move, and its fee level is also below the category average.
iShares 0-5 Year TIPS Bond ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeBecause it holds inflation-linked Treasuries, its performance depends on inflation expectations and the trajectory of real yields. Thanks to its short duration, its price swings tend to be relatively mild even when interest rates move sharply.
When inflation concerns come to the fore, inflows tend to appear as investors seek a defensive option, and because it is a short-term bond fund, there is also demand from those who prefer relative stability during volatile markets.
iShares 0-5 Year TIPS Bond ETF Pros and Cons
Its strengths are a low fee and reduced interest rate risk through short duration, while its weakness is relative underperformance when inflation cools.
💪 Key Strengths
⚠️ Points to Watch
iShares 0-5 Year TIPS Bond ETF Alternative ETFs and Related Products
The two ETFs in the table, SCHP and TIP, are TIPS ETFs covering the full maturity range. Their durations are longer than that of STIP, so they have greater interest rate sensitivity and are the most direct comparisons. For its focus on the short end of the curve, VTIP, which tracks the same short-term TIPS, is the closest direct substitute, and investors who want nominal short-term Treasury exposure can also consider SHY. In addition, the two funds in the table, TDTT and TDTF, are TIPS funds designed to target a specific duration, and DFIP is likewise an inflation-linked bond ETF built on its sponsor's own methodology, with a different duration and fee structure.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 SCHP | Schwab U.S. Tips ETF | $25.64 | +0.0% | $16.5B | 0.03% | 4.91% | -5.3% |
 TIP | iShares TIPS Bond ETF | $106.31 | +0.1% | $14.6B | 0.18% | 4.43% | -5.0% |
 TDTT | Northern Trust iBoxx 3-Year Target Duration TIPS ETF | $23.52 | -0.0% | $2.5B | 0.18% | 4.86% | -3.5% |
 LTPZ | PIMCO 15+ Year U.S. TIPS Index ETF | $47.46 | +0.5% | $1.1B | 0.20% | 6.24% | -12.9% |
 DFIP | Dimensional Inflation-Protected Securities ETF | $39.82 | +0.0% | $1.1B | 0.11% | 5.32% | -6.1% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 BNO | United States Brent Oil Fund LP | 0.21% | $70.07 | -1.3% | $0.0M | - | - |
 USLM | United States Lime & Minerals Inc | 0.31% | $109.65 | -1.8% | $3.1B | 23.5 | 0.22% |
iShares 0-5 Year TIPS Bond ETF Investor Checkpoints
Here are the points to review before investing in STIP. It is an inflation-protection asset, but duration, real yields, and exchange rates should be checked in advance, and you should also keep in mind that its coupon yield may be lower than that of nominal bonds.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Check the impact of cumulative costs over a long holding period | Low level |
| 📉 Duration | Check interest rate sensitivity and maturity range | Kept short |
| 📈 Inflation Linkage | Protective effect when prices rise | Linkage applied |
| 💱 Exchange Rate | Impact on returns converted to Korean won | No currency hedge |
If inflation cools or real yields rise, the price can fall even for short-term securities. Its coupon yield may be lower than that of nominal bonds, so performance can lag during periods of price stability.
It is a bond ETF that is highly useful as a short-term inflation-protection tool. If you want longer inflation exposure, SCHP and TIP are options, and if your goal is to focus on the short end of the curve, STIP itself is a good fit.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of June 21, 2026.
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