Bond manager PIMCO came out with three new TIPS ETFs. Although PIMCO usually actively manages its bond portfolios with regard to quality, maturity, and individual issue selection, these ETFs are managed to track an index.

PIMCO 1-5 Year U.S. TIPS Index Fund (STPZ) invests in TIPS maturing in one to five years. Of the 30 TIPS bonds outstanding as of this writing, 10 bonds mature between 1 year and 5 years. PIMCO 1-5 Year TIPS ETF holds all 10 of them.

PIMCO 15+ Year U.S. TIPS Index Fund (LTPZ) invests in TIPS maturing in 15 years or more. Of the 30 TIPS bonds outstanding as of this writing, 8 bonds mature in 15 years or more. PIMCO 15+ Year TIPS ETF holds all 8 of them.

PIMCO Broad U.S. TIPS Index Fund (TIPZ) invests in TIPS maturing in one year or more. Of the 30 TIPS bonds outstanding as of this writing, 28 bonds have a maturity date greater than one year. PIMCO Broad TIPS ETF holds all 28 of them.

PIMCO Broad TIPS ETF (TIPZ) has an investment universe similar to that of iShares TIPS ETF (TIP). Their portfolio holdings and the weights to each holding are practically identical.

* Compiled from portfolio holdings data as of Sept. 10, 2009 obtained from PIMCO and iShares web sites. For a detailed comparison of portfolio holdings, see PIMCO Broad TIPS ETF vs iShares TIPS ETF.

All three PIMCO TIPS ETFs have an expense ratio of 0.20% per year. All of them are managed by Dr. Vineer Bhansali. According to PIMCO, Dr. Bhansali has 19 years of investment experience and holds a Ph.D. in theoretical particle physics from Harvard University.

Because PIMCO Broad TIPS ETF (TIPZ) is similar to iShares TIPS ETF (TIP) in both holdings and expense ratio, and TIPZ is new while TIP has been established in the marketplace, iShares TIP still holds an advantage. On the other hand, PIMCO's short and long TIPS ETFs STPZ and LTPZ are unique. If an investor wishes to target either end of the maturity range, they are a good substitute for purchasing individual TIPS bonds on the secondary market.