State Street Global Advisors (SSgA) has launched the SPDR Barclays 0-5 Year TIPS ETF (Symbol: SIPE) on the NYSE Arca.
The exchange traded fund gives investors a potential opportunity to protect their portfolios from inflation and diversify their fixed income allocations to prepare for rising interest rates. It adds to investors’ options in the SPDR fixed-income product suite in a short-term TIPs offering.
“With rising rates on the horizon, investors are increasingly relying on ETFs to manage duration risk within their fixed-income allocations,” says Ross. “The new SPDR Barclays 0-5 Year TIPS ETF seeks to offer these investors a hedge against inflation that’s less sensitive to interest rate changes than longer duration TIPS funds.”
The SPDR Barclays 0-5 Year TIPS ETF seeks to track the performance of the Barclays 0-5 Year Government Inflation-linked Bond Index, which includes publicly issued Treasury Inflation-Protected Securities (TIPS), that have less than five years remaining to maturity and an issue size of at least USD500 million. It has an expense ratio of 0.15 percent.
SSgA manages more than USD413 billion in SPDR ETF assets worldwide (as of December 31, 2013)* and is one of the largest ETF providers globally.
