Lyxor Asset Management has launched two ETFs to track inflation expectations.
The new launches are the Lyxor USD 10-year Inflation Breakeven Ucits and the Lyxor EUR 2 to 10-uear Inflation Breakeven Ucits ETF.
The aim of the funds is to provide clients exposure to inflation expectations without the risks of rising interest rates.
This will be achieved with exposure to changing inflation expectations through the spread between traditional bond yields and those of inflation-linked bonds, Lyxor says.
This means investors will be unaffected by rising interest rates, compared to other bonds.
Lyxor head of ETF and index product development Francois Millet says: “Lyxor’s Breakeven Ucits ETFs give investors exposure to the breakeven rate of inflation with the benefit of transparency and liquidity, thus turning it into a proper and investable asset class.”
Both ETFs will charge 0.25 per cent.