Walsh Andrew UBS ETF

UBS launches new long duration US Treasury inflation linked ETF

UBS Asset Management launches new long duration US Treasury inflation linked ETF with embedded GBP-hedging on the London and Swiss stock exchanges that broaden inflation protection offering….

UBS Asset Management has launched the UBS ETFs Bloomberg Barclays TIPS 10+ UCITS (hedged to GBP) A-dis ETF on the London and Zurich SIX Stock Exchanges.

This new inflation-linked ETF enables investors to counter potential future spikes in expected long-term US inflation rates in Sterling terms.

The embedded currency hedge is a valuable feature in times of elevated foreign exchange uncertainty. UBS AM is Europe`s largest provider of currency hedged ETF products (source: ETFGI , December 2018).

The UBS Bloomberg Barclays TIPS 10+ UCITS (hedged to GBP) A-dis ETF tracks the Bloomberg Barclays US Government 10+ Year Inflation-Linked Bond™ hedged to GBP (Total Return) Index.

 There is growing concern that inflationary pressures may rise again, primarily due to persistently expansive central bank monetary policies. With this in mind, investors are increasingly considering how to best inflation-proof their investment returns, and deliver a real yield over and above inflation rates.

Andrew Walsh, Head of Passive and ETF Specialist Sales UK & Ireland, said: “We are very pleased to expand our Fixed Income offering to include a fund which helps our clients achieve a targeted exposure to long duration US TIPS coupled with the benefits of GBP-hedging. Sterling based investors who are considering US Treasuries with inflation protection and believe that there is scope for the GBP to appreciate against the USD should examine this unique ETF. This TIPS 10+ GBP-hedged ETF perfectly complements our existing UBS TIPS 1-10 GBP-hedged UCITS ETF”.

Building on the strength of UBS’s existing fixed income offering

UBS Asset Management has been managing passive investments for over 30 years.

Index management is a core function within UBS, with total AuM for passive assets of GBP 242bn (as of 31 December 2018).

This product joins the existing stable of inflation linked UBS ETFs, available in unhedged as well as currency hedged variants.

Name CCY TER ISIN Bloomberg
UBS ETF – Bloomberg Barclays TIPS 10+ UCITS ETF (hedged to GBP) A-dis GBP 0.25% LU1459803133 T10G LN  / TIP10G SW

Source: ETFWorld

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