UBS lists new inflation-linked ETFs

UBS Asset Management has listed a new range of exchange-traded funds (ETFs) which hedge against inflation risk by tracking a US Treasury inflation-protected securities (TIPS) benchmark. The ETFs will have a range of shorter and longer durations and will be available in a currency-hedged version to protect investors against currency fluctuations. Andrew Walsh, Head of UBS ETF Sales UK & Ireland, said: “There is growing sentiment in markets that inflationary pressures may start to rise again after an extended period of low interest rates and the potential impact of nascent signs of fiscal stimulus from the US and elsewhere.”

The ETFs have total expense ratios (TER) of 0.2% or 0.25%. The lower TER applies to three sterling denominated ETFs, while the higher TER applies to the ETFs denominated in euros and Swiss francs.