BlackRock lists a new $ TIPS 0-5 iShares ETF on the LSE

Blackrock: One new exchange traded fund issued by iShares ETF have been tradable on the London Stock Exchange

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By ETFWorld.co.uk

iShares $ TIPS 0-5 UCITS ETF

The Share Class is a share class of a Fund which aims to achieve a return on your investment, through a combination of capital growth and income on the Fund’s assets, which reflects the return of the ICE U.S. Treasury Inflation Linked Bond Index 0-5 Years, the Fund’s benchmark index. The Share Class also aims to reduce the impact of exchange rate fluctuations between the Fund’s underlying portfolio currencies and Euro on your returns.

The Share Class, via the Fund is passively managed, and aims to invest so far as possible and practicable in the fixed income (FI) securities (such as bonds) that make up the Index and comply with its credit rating requirements, combined with foreign currency contracts for currency hedging. If the credit ratings of the FI securities are downgraded, the Fund may continue to hold them until they cease to form part of the Index and it is practicable to sell them.

The Index measures the performance of the US Treasury Inflation Protected Securities (US TIPS) market. The Index includes only inflation-protected bonds issued by the US Treasury that have a remaining maturity of between zero and five years and a minimum amount outstanding of US$300 million. The Index uses a market capitalisation weighted methodology. Market capitalisation is the market value of the outstanding bond issuance.

Bonds must be fixed rate and denominated in US Dollar, with coupons (i.e. interest) and principal paid in US Dollar. The Index excludes US state and local government series bonds and Treasury STRIPS (Separate Trading of Registered Interest and Principal of Securities), floating rate notes, cash management and US Treasury bills, and any government agency debt issued with or without a government guarantee. The FI securities will, at the time of inclusion in the Index, be investment grade (i.e. meet a specified level of creditworthiness)

Source: ETFWorld.co.uk