Content and data provided by various third parties and Fidelity − Terms of Use | Help/Glossary
Research > ETFs > ETF / ETP Commentary > 

How Bond Ladder ETFs Reimagine Retirement Income Strategies

BY | ETF Database
02/19/2026 | 37 VIEWS
It goes without saying that investors traditionally look to the market to accumulate more wealth, not the other way around.However, once investors approach retirement age, the focus tends to shift to decumulation rather than accumulation. In other words, older clients often look to advisors for help distributing their wealth in a liquid and transparent manner, while also enabling lifestyle preservation. Oftentimes, investors look to products like money market funds as a low-risk way to put their cash to work. However, money market funds face their own challenges, including shifting interest rates and reinvestment risk.Bond Ladder ETFs offer a Transparent Route to Retirement IncomeThis is where distributing ladder ETFs can emerge as a potent alternative. These funds offer a structured, transparent means to decumulate through a laddered, flexible portfolio, invested in either municipal bonds or Treasury Inflation-Protected Securities (TIPS). As an example, take a look at how the Northern Trust 2045 Inflation-Linked Distributing Ladder ETF (TIPC ) works. As one of Northern Trust’s distributing ladder ETFs, TIPC offers exposure to a laddered portfolio of TIPS. TIPC’s goal is to generate transparent, consistent income across a 20-year outcome period. To do so, the fund separates each of the 20 rungs of its laddered portfolio by calendar year. As such, each rung is filled with bonds that reach maturity in a specific calendar year. Crucially, all of these funds are constructed with a relatively even weighting. This can help TIPC’s investors access a more consistent path to long-term, inflation-linked income, along with annual principal distributions once a ladder rung matures. This approach gives TIPC a potent niche as a tool for investors to decumulate as they approach retirement. Investors can allocate a portion of their savings to TIPC to help mitigate inflation risk and generate steady income. For those in their later years who rely on their portfolio and retirement income to cover lifestyle expenses, this strategy could prove especially fortuitous. For more news, information, and analysis, visit the Bond Ladders Content Hub.Disclosures:ETF investing involves risk, and principal loss is possible.  Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the ETF. Brokerage commissions will reduce returns.  The net asset value of the Northern Trust ETFs will decline over time as income payments are made to shareholders.  Individual bonds carry an obligation to fully return principal to investors at maturity, however ETFs have no such obligation. Before investing, carefully consider the investment objectives, risks, charges, and expenses. This and other information is in the prospectus and a summary prospectus, copies of which may be obtained by visiting www.flexshares.com. Read the prospectus carefully before you invest. Northern Funds Distributors, LLC, distributor. Northern Funds Distributors, LLC and FlexShares are not affiliated with Northern Trust. All investments are subject to investment risk, including the possible loss of principal amount invested. Investments do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns. Not FDIC insured | May lose value | No bank guarantee

More Commentary

ETF Prime: International Stocks Lead Flows
BY | ETF Database
7:33 am ET 02/20/26 | 2 VIEWS
CLO ETFs: The “Arms Race” Heats Up
BY | ETF Database
02/19/2026 | 61 VIEWS
High-Yield Prospects: February 18 Edition
BY | ETF Database
02/18/2026 | 147 VIEWS
View more Commentary

Search Commentary

Enter Keyword(s)
Filter Results

Performance data shown is past performance and is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. Yield and return will vary, therefore you have a gain or loss when you sell your shares. For standard quarterly performance, go to the fund's Snapshot page by clicking on the ETF/ETP's symbol.

ETFs may trade at a premium or discount to their NAV and are subject to the market fluctuations of their underlying investments.

For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain FBS platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF's prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice. BlackRock and iShares are registered trademarks of BlackRock, Inc. and its affiliates.

FBS receives compensation from the fund's advisor or its affiliates in connection with a marketing program that includes the promotion of this security and other ETFs to customers ("Marketing Program"). The Marketing Program creates incentives for FBS to encourage the purchase of certain ETFs. Additional information about the sources, amounts, and terms of compensation is in the ETF's prospectus and related documents. Please note that this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral.

News, commentary (including "Related Symbols") and events are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.

Any data, charts and other information provided on this page are intended to help self-directed investors evaluate exchange traded products (ETPs), including, but limited to exchange traded funds (ETFs) and exchange traded notes (ETNs). Criteria and inputs entered, including the choice to make ETP comparisons, are at the sole discretion of the user and are solely for the convenience of the user. Analyst opinions, ratings and reports are provided by third-parties unaffiliated with Fidelity. All information supplied or obtained from this page is for informational purposes only and should not be considered investment advice or guidance, an offer of or a solicitation of an offer to buy or sell a particular security, or a recommendation or endorsement by Fidelity of any security or investment strategy. Fidelity does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating ETPs. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use. Determine which securities are right for you based on your investment objectives, risk tolerance, financial situation and other individual factors and re-evaluate them on a periodic basis.

Before investing in any exchange traded product, you should consider its investment objective, risks, charges and expenses. Contact Fidelity for a prospectus, offering circular or, if available, a summary prospectus containing this information. Read it carefully.