UBS launches US inflation-linked ETFs

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UBS has launched a suite of ETFs that mitigate inflation risk by tracking a benchmark of US Treasury inflation-protected securities (Tips).

The UBS ETF Barclays Tips 1-10 Ucits ETF and the UBS ETF Barclays Tips 10+ Ucits ETF cover shorter and longer duration.

Currency-hedged versions are available for investors seeking to mitigate currency fluctuations.

Head of UBS ETF sales for UK and Ireland Andrew Walsh says: “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.”

The TER on the Luxembourg-domiciled funds ranges from 0.2 per cent to 0.25 per cent.