Tabula ETF launches Tabula US Enhanced Inflation UCITS ETF (USD) – GBP – Hedged – Acc.
Michael John Lytle Tabula CEO
The Tabula US Enhanced Inflation UCITS ETF (USD) – GBP-Hedged Acc. aims to track the Bloomberg Barclays US Enhanced Inflation Index (H35616US Index), less fees and expenses. This share class also aims to hedge exposure to EUR
About the index
The H35616US Index provides exposure to a broad portfolio of US inflation-linked bonds (TIPS) and also acts as an efficient tool to capture US inflation expectations, calculated as the difference between US TIPS and US real yields, in a single index.
- 100% exposure to US TIPS replicating the Bloomberg Barclays US Govt Inflation-linked TR index (realised inflation)
- 100% exposure to US Breakevens (inflation expectations):
– Long US TIPS as per the Bloomberg Barclays US Government Inflation-Linked 7-10 Year TR Index
– Short US real yields as per the Bloomberg Barclays US Treasury 7-10 Year TR Index.
The index is rebalanced monthly to maintain equal exposure to US TIPS and US
The Fund aims to directly replicate the index, combining the performance of US Treasury inflation-protected securities and the US 7-10 year breakeven inflation rate.
The Fund invests in a portfolio of US TIPS and enters into an OTC Total Return Swap agreement in which it receives the return of the US Breakeven Inflation Rate in exchange for agreed payments to the Swap Counterparty, BNP Paribas.
Tabula US Enhanced Inflation UCITS ETF (USD) – GBP – Hedged – Acc.
Bloomberg Barclays US Enhanced Inflation Index
London Stock Exchange
Source : ETFWorld.co.uk