PIMCO has launched the first short term TIPS ETF.

The PIMCO 1-5 Year U.S. TIPS Index Fund (STPZ) tracks the Merrill Lynch 1-5 Year US Inflation-Linked Treasury Index.

The unmanaged index is comprised of U.S. Treasury Inflation Protected Securities with a remaining term to final maturity less than 5 years and not less than 1 year.

STPZ aims to offer investors a high degree of protection against the immediate effects of inflation on their portfolio. Shorter-dated TIPS have historically shown a significantly higher correlation with current inflation and lower volatility relative to an index that covers the entire TIPS maturity spectrum.

See the ETF Directory for a complete listing of PIMCO ETFs.