US Treasuries  

UBS launches ETF range tracking US Tips

UBS launches ETF range tracking US Tips

UBS Asset Management has launched a range of exchange-traded funds (ETFs) which seek to mitigate inflation risk by tracking US Treasury inflation-protected securities (Tips).

The products will track the Barclays Tips 1-10 and Barclays 10 plus indices, which have different levels of duration, with the aim of providing "transparent and structured exposure" to this market.

The five-strong range, which includes currency-hedged products, carries total expense ratios from 20 to 25 basis points.

Andrew Walsh, head of UBS ETF sales in the UK and Ireland, said: “There is growing sentiment in markets that inflationary pressures may start to rise gain after an extended period of low interest rates and the potential impact of nascent signs of fiscal stimulus from the US and elsewhere.

“With this innovative suite of ETFs our clients are able to protect long-term purchasing power and gain access to an asset class that compounds the real rate of return.”