State Street Global Advisors (SSgA) has unveiled a new SPDR Barclays 0-5 Year TIPS ETF on the NYSE Arca.
The SPDR Barclays 0-5 Year TIPS ETF, with an expense ratio of 0.15%, will offer investors an opportunity to protect their portfolios from inflation and diversify their fixed income allocations to protect from rising interest rates.
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Additionally, the ETF will also offer investors options in the SPDR fixed-income product suite in short-term TIPs offering.
The ETF will track the performance of the Barclays 0-5 Year Government Inflation-linked Bond Index, which consists of publicly, issued Treasury Inflation-Protected Securities (TIPS), which have less than five years remaining to maturity as well as an issue size of at least US$500 million.
SSgA currently manages more than US$413 Billion in SPDR ETF assets globally as of 31 December 2013.
Jim Ross, executive vice president, SSgA, said: "With rising rates on the horizon, investors are increasingly relying on ETFs to manage duration risk within their fixed-income allocations. The new SPDR Barclays 0-5 Year TIPS ETF seeks to offer these investors a hedge against inflation that’s less sensitive to interest rate changes than longer duration TIPS funds."
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