FlexShares iBoxx 3-Year Target Duration TIPS Index Fund

The FlexShares iBoxx 3-Year Target Duration TIPS Index Fund is an exchange-traded fund (ETF) designed to provide investors exposure to Treasury Inflation-Protected Securities (TIPS) while maintaining a specific interest rate duration target of approximately three years. Its primary function is to offer a hedge against inflation while managing sensitivity to interest rate movements. The fund achieves this by investing in a diverse range of U.S. Treasury inflation-linked index securities adjusted for a three-year duration benchmark. This ETF is notably significant for its ability to protect purchasing power in inflationary environments, which impacts sectors that are sensitive to inflation fluctuations, such as consumer goods and real estate. By holding securities that adjust principal and interest payments in line with the Consumer Price Index (CPI), it helps mitigate inflation risk for investors. The FlexShares iBoxx 3-Year Target Duration TIPS Index Fund plays an important role in financial markets by offering a balanced approach to managing inflation risk while maintaining interest income. It is an attractive choice for investors seeking inflation protection with limited exposure to interest rate volatility.