European fixed income ETF provider Tabula Investment Management Limited (Tabula) has listed its US Enhanced Inflation UCITS ETF on the SIX Swiss Exchange.
Tabula is listing a new CHF-hedged share class (TINC) to complement its existing USD (TINF, LSE), EUR-hedged (TINE, Borsa Italiana) and GBP-hedged (TING, LSE) share classes. The USD version was launched in November 2020 and already has approximately USD35 million in AuM.
The Tabula US Enhanced Inflation UCITS ETF CHF-hedged (TINC) is the only ETF in the market that provides exposure to both realised and expected US inflation in a single index. It combines exposure to a US TIPS portfolio with exposure to US inflation expectations (10-year breakevens).
“Inflation is an escalating concern amongst professional investors,” says Tabula CEO Michael John Lytle. “The pandemic and associated economic lockdowns have created unprecedented uncertainty over the likely path of inflation. The pattern of our spending has changed dramatically, making it difficult to predict what the net effect will be on economy-wide price indexes.
“Central banks have injected trillions of dollars into financial markets with much more expected to follow, and policymakers are unlikely to tighten monetary policy in response to rising inflation until a sustained post-Covid global economic recovery is underway.
“Investors need to place a greater focus on inflation, and ETFs are a natural choice for taking inflation protection. However, most inflation ETFs force investors to choose between realised inflation and inflation expectations. For many investors, both are important measures and a more efficient solution is to combine them, which is what we have done with the Tabula US Enhanced Inflation UCITS ETF.”
“Switzerland is one of the biggest and fastest growing ETF markets in Europe, and it is imperative that we have a strong foothold here,” says Stefan Garcia, Managing Director, Tabula. “Listing a CHF-hedged share class of our US Enhanced Inflation ETF on the SIX Swiss Exchange demonstrates Tabula’s commitment to this important market.”
The Tabula US Enhanced Inflation UCITS ETF CHF-hedged share class was listed on the SIX Swiss Exchange on 25 February 2021 with ticker TINC and has an ongoing charge of 0.34 per cent.