UBS AM unveils ETF range tracking US TIPS indices

Also offering currency hedged versions

UBS Asset Management has launched a range of ETFs tracking an index of US Treasury Inflation-Protected Securities (TIPS).

The ETFs replicate the Barclays TIPS 1-10 and Barclays 10+ indices, which provide exposure to TIPS of shorter and longer duration, and will seek to reduce the risk of inflation. UBS warns 30% of UK jobs at risk after Brexit vote The principal amount of a TIPS issue is adjusted to reflect changes in the Consumer Price Index (CPI). Then a fixed coupon rate is issued and applied to its principal amount, which varies depending on the rate of inflation. The five-strong ETF range will offer currency hedged versions, enabling investors to gain exposure to the benchmark without the risk of...