UBS AM reduces fee on US TIPS ETF after strong inflows

Effective as of 1 April

UBS Asset Management has cut the total expense ratio (TER) on its Barclays TIPS 1-10 UCITS ETF by five basis points to reflect economies of scale as a result of strong inflows.

As of 1 April, the TER for the unhedged share class was reduced from 0.20% to 0.15%, while the currency hedged share classes have seen fees fall from 0.25% to 0.20%. The ETF seeks to gain exposure to a benchmark of US Treasury inflation protected securities (TIPS) with shorter duration. The reduction in fees was made possible by strong inflows into the product, which gathered $470m year-to-date to stand at more than $600m in size. The inflows have been driven by investors looking to protect themselves from the potential of rising inflation in the US following President Donald Trump...