Northern Trust 2045 Inflation-Linked Distributing Ladder ETF (TIPC)

Overview

The Fund aims to deliver periodic inflation-linked distributions utilizing U.S. Treasury Inflation Protected Securities (often abbreviated as “TIPS”). This approach focuses on offering a combination of income and principal distributions until the year 2045. The primary objective is to cater to investors pursuing a spend-down strategy designed to cope with inflation while effectively managing ongoing expenses. The Fund seeks to ensure a steady distribution of monthly income along with annual return of principal over a period extending up to twenty years.

Products and Services

• U.S. Treasury Inflation Protected Securities (TIPS)

  TIPS are government securities specifically designed to protect investors from inflation. The principal amount of TIPS rises with inflation and decreases with deflation, ensuring that the purchasing power of the investment is preserved. Investors receive interest payments every six months, which are calculated on the adjusted principal, providing a reliable income stream.

• Monthly Income Distributions

  The Fund is structured to provide investors with monthly distributions of income, which can be particularly beneficial for those requiring regular cash flow to manage living expenses. These distributions are generated from the interest payments received from the TIPS held within the portfolio, creating a stable financial resource for investors.

• Annual Principal Return

  In addition to regular income, the Fund also offers annual returns of principal to investors. This feature is designed to assist those looking to gradually deplete their investment capital over time, ensuring that they have access to their principal while still providing protection against inflation.

• Inflation Protection Strategy

  The core strategy of the Fund focuses on hedging against inflation, which is vital for preserving the value of investments over longer periods. By investing in TIPS, the Fund inherently adjusts for inflation, thus ensuring that the purchasing power of the investor's returns is not eroded over time, making it a sound option for long-term financial planning.

• Twenty-Year Time Horizon

  The structure of the Fund is tailored for a two-decade investment outlook, providing a long-term framework for managing expenses and realizing financial goals. This long-term perspective allows investors to have a clear understanding of their cash flow needs and strategize for their financial future, ensuring that they can confidently navigate any inflationary pressures that may arise during this period.