Bringing you live news and features since 2006 

iShares launches short-term TIPS exchange-traded fund

RELATED TOPICS​

BlackRock’s iShares exchange-traded funds business is launching the iShares Barclays 0-5 Year TIPS Bond Fund on the NYSE Arca.



The fund offers targeted exposure to the short end of the domestic Treasury Inflation Protected Security curve through TIPS with less than five years to maturity.

The fund is the only ETF that offers access to the very shortest end of the curve (zero to one year), and is intended to help investors seek protection against realised inflation, achieve additional portfolio diversification, or express a view on yields.

The fund expands the iShares fixed income offering to 33 ETFs.

"iShares has long been the fixed income ETF leader, and we have continued to see strong interest in our fixed income products this year, as investors look for protection from inflation and further diversification in their portfolios," says Matt Tucker, head of fixed income investment strategy for iShares at BlackRock. "The new iShares Barclays 0-5 Year TIPS Bond Fund offers investors these same attributes along with a low sensitivity to interest rates. For example, a STIP investor would receive higher distributions if inflation increases over time, but would see less impact if interest rates rise than would an investor in a longer maturity TIPS fund."

The fund invests only in TIPS securities with zero to five years remaining to maturity. Unlike other TIPS ETFs, it holds securities until maturity. This means that securities acquired by the fund pay out inflation-adjusted income through the fund’s distributions and then return principle to the fund at maturity. These maturity proceeds are then used to purchase more TIPS securities. As a result of this mechanism, a greater percentage of an investor’s return in the fund is made up of inflation adjusted income relative to other TIPS funds.

Latest News

BlackRock's iShares, an undisputed leader among European ETF issuers, pushed further ahead in Q1 with EUR173 billion in trades, triple..
European ETFs raised USD47.8 billion in Q1, a 15 per cent increase compared to the same period in 2023, according..
LSEG Lipper’s March report finds that globally equity ETFs (+EUR113.2 billion) enjoyed the highest estimated net inflows for the month,..
Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..

Related Articles

etf active trading
Latest Morningstar data shows actively managed ETFs’ share of the US ETF market rose to 8.5 per cent at the...
Kristen Mierzwa, FTSE Russell
Index Investments Group (IIG), a division within index provider FTSE Russell, has extended its range of indices through two new...
ETFs
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by