FlexShares iBoxx 3-Year Target Duration TIPS Index Fund [TDTT] Stock Forecast

SDY and TDTT have traded with massive trading volume yesterday.

After U.S. equities posted their worst first-half performance since 1970, they pulled off a stellar comeback in July. During the month, three funds in FlexShares' lineup of ETFs saw notable inflows as investors looked for income in the current environment and protection against intermediate- and long-term inflation.

Decades-high inflation has fixed-income investors looking for ways to protect their buying power and the value of their investment assets, prompting keen interest in Treasury Inflation Protected Securities, commonly referred to as TIPS. TIPS are commonly misunderstood, however, even among financial professionals.

April saw a continuation of market turbulence, driven by rate hikes by the Federal Reserve, ongoing geopolitical headwinds, and lackluster first-quarter earnings results among many mega-cap companies.  The broader markets were battered as large-cap growth stocks fell double-digit percentages, the worst April on record since 2000, while large-cap value “outperformed,” falling only 5.6%.

Investors looking for a way to hedge against inflation are increasingly looking to TIPS, or Treasury inflation-protected securities. A commonly held belief is that by the time you hear about TIPS, like when they're making headlines and raking in new assets, you're too late to the party.

Christopher Huemmer offers some perspective for investors dealing with the current investment environment.

The top three ETFs in FlexShares' line-up that raked in the newest assets in March are largely funds that offer high income, demonstrating investors' desire for yield. The FlexShares iBoxx 3 Year Target Duration TIPS Index Fund (TDTT) took in the most flows in March, taking in $455 million over one month and $566 million [.

Inflationary pressures aren't only relegated to consumers via higher prices on goods and services. They're also hitting small businesses and their bottom lines.

Investors can incorporate exposure to certain asset classes to help mitigate the corrosive effects of inflation on a traditional portfolio. Inflation in the U.S. has continued to increase.

Investors looking for a way to hedge inflation are increasingly looking to TIPS, or Treasury inflation-protected securities. Most bonds pay investors a set amount of interest semiannually and then pay the original face value of the bond at maturity; TIPS, however, are marketable securities whose principal is adjusted by changes in the Consumer Price Index.

FlexShares iBoxx 3-Year Target Duration TIPS Index Fund is a US stock and trading under the symbol TDTT

FlexShares iBoxx 3-Year Target Duration TIPS Index Fund stock price is $23.53 today.

Yes, FlexShares iBoxx 3-Year Target Duration TIPS Index Fund is a publicly traded company.