Coming Soon From iShares: 0-5 Year TIPS ETF
ETF Database submits: As investors pile into gold and other precious metal ETFs, expectations of an eventual surge in inflation seem to be building–even through deflation may be the more immediate concern. Another popular way to protect against such a development has been with inflation protected bonds, securities that can offer investors protection against inflation by adjusting principal in line with changes in CPI while also paying out dividends–something that most precious metal ETFs (at least those not collateralized by U.S. Treasury bonds) cannot match. Due to these payouts, these funds have becomes extremely popular with investors; the top ETF in the Inflation-Protected Bond ETFdb Category, the iShares Barclays TIPS Bond Fund (TIP), has taken in over $20 billion in assets and trades more than 800,000 shares daily. Yet some investors who are concerned about long-term bonds may have reservations about TIP, which currently has less than 40% of its total assets in bonds maturating in less than five years and slightly more than 25% of its assets in bonds maturing more than 15 years from now. Due to this, a number of funds have stepped in to take advantage of this gap, with PIMCO leading the way in terms of segmenting the TIPS market. Now iShares is planning another addition to its TIPS ETF lineup, recently detailing plans for another fund.Complete Story »
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