Gross’ PIMCO Total Return ETF (NYSEArca: BOND) has been underperforming partly due its allocations in TIPS – BOND currently has about 35% in U.S. government related securities, including TIPS.
The iShares TIPS Bond ETF (NYSEArca: TIP), which holds Treasury inflation-protected securities with at least 1-year remaining to maturity, is down 6.9% year-to-date.
For more information on Treasury Inflation Protected securities, visit our TIPS category.
Max Chen contributed to this article.