A new iShares exchange traded fund, the iShares USD TIPS UICTS ETF EUR Hedged (Acc), which focuses on US government bonds, has launched on Xetra.
The ETF enables investors to participate in the performance of US dollar-denominated US Treasury inflation-protected securities (TIPS). The nominal amount of inflation-protected bonds is protected from changes in inflation. The bonds in the index must have a remaining term of at least one year and a minimum amount outstanding of US$500 million.
This ETF unit class uses a monthly hedging strategy to hedge the exchange rate risk between the US dollar and the euro.