Help me understand STIP ETF [iShares 0-5 Year TIPS Bond - no dividend paid]

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wildbill68
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Joined: Tue Jul 20, 2021 9:44 am

Help me understand STIP ETF [iShares 0-5 Year TIPS Bond - no dividend paid]

Post by wildbill68 »

Can anyone help me understand why the ETF; STIP did not pay a dividend for October and November? I thought this fund paid monthly.
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vineviz
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Re: Help me understand STIP ETF

Post by vineviz »

wildbill68 wrote: Fri Nov 04, 2022 7:21 am Can anyone help me understand why the ETF; STIP did not pay a dividend for October and November? I thought this fund paid monthly.
The fund, iShares 0-5 Year TIPS Bond ETF (STIP), does pay dividends monthly but sometimes the dividend is $0.00.

I know that sounds dumb, but the monthly distribution for this fund has been $0.00 over 40% of the time since inception and nearly 60% of the time in October.

Mutual funds don't only, or even always, pay "income" on a schedule that makes sense. And TIPS aren't issued as frequently as nominal bonds, so there are some months where there are simply no TIPS making interest payments.
"Far more money has been lost by investors preparing for corrections than has been lost in corrections themselves." ~~ Peter Lynch
billyt
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Re: Help me understand STIP ETF

Post by billyt »

and the inflation adjustment has been essentially zero for September and October!
Hank Moody
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Re: Help me understand STIP ETF

Post by Hank Moody »

billyt wrote: Fri Nov 04, 2022 8:01 am and the inflation adjustment has been essentially zero for September and October!
How is the inflation adjustment essentially zero for those two months?
-HM
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