Bringing you live news and features since 2006 

iShares announces launch of two new Inflation-linked bond funds


BlackRock, Inc has launched two new inflation-linked funds on the NYSE Arca. The new funds are the iShares Global Inflation-Linked Bond Fund (NYSE Arca: GTIP) and the iShares International Inflation-Linked Bond Fund (NYSE Arca: ITIP). GTIP and ITIP join the iShares Barclays TIPS Bond Fund (TIP) — the first TIPS ETF to come to market — and the more recently launched iShares Barclays 0-5 Year TIPS Bond Fund (STIP) on the iShares product line. In total, the four funds provide investors the ability to access inflation-linked bonds in the US as well as those from foreign countries.

“Just as investors use US TIPS to help protect domestic portfolios against inflation, they should consider using global inflation-linked bonds to help protect their global portfolios,” says Matthew Tucker, iShares Head of Fixed Income Investment Strategy at BlackRock. “A global investment approach requires a global inflation solution.

“Inflation-linked bonds from foreign countries operate much like US TIPS. While the calculation for adjusting principal and interest varies between countries, the concept is the same: the bonds are indexed to local consumer price indexes in order to help protect investors from the negative effects of inflation.”

Russ Koesterich, iShares Chief Investment Strategist at BlackRock, says: “Global inflation may be an increasingly important part of portfolio construction going forward, as recent monetary policy raises the risk of inflation abroad. Countries to watch include the US, UK, Canada, and Australia in the developed world and China, India and Brazil in the emerging markets.”

GTIP is benchmarked to the BofA Merrill Lynch Global Diversified Inflation-Linked Index, and is the first of its kind in the exchange traded fund marketplace. The fund provides one-stop-shop access to global inflation-linked bonds. It includes exposure to the US, the UK, France, Italy and Brazil.

ITIP is benchmarked to the BofA Merrill Lynch Global ex-US Diversified Inflation-Linked Index. The fund does not include exposure to the US, but rather sizeable allocations to the UK, France, Italy, Australia and Brazil, among other countries. It can be paired with iShares Barclays TIPS Bond Fund (TIP) as part of a global inflation-linked bond strategy.

Latest News

News came last night from the US that the SEC has approved CBOE’s proposal to list and trade VanEck’s spot..
Irish domiciled funds surpassed EUR4.3 trillion AuM (Assets under Management) at end-March 2024, a 15 per cent increase in net..
European white label ETF platform, HANetf, has announced its total assets under management (AUM) has now exceeded USD4.31 billion...
New research from European ETF provider Tabula Investment Management shows investors are expecting improvements in ESG from the gold mining..

Related Articles

Timothy Rotolo, Range Funds
In 2023, Timothy Rotolo launched his business, Range Fund Holdings, the parent company for Range Indices and Range ETFs, followed...
Dan Miller, IQ-EQ
With just over a week to go till T+1 settlement begins in North America, Canada and Mexico, time is of...
Emily Spurling, Nasdaq
Last October’s ETF Express US Awards 2023 found Nasdaq winning Best Index Provider – ESG ETFs and Best Index Provider...
Vinit Srivistava, MerQube
Index provider, MerQube, launched in 2019, with the aim of providing a “technology-driven answer to the most complex, rules-based investment...
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