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February 28, 2014updated 04 Apr 2017 2:28pm

State Street Global Advisors unveils new short-term TIPS SPDR ETF

State Street Global Advisors (SSgA) has unveiled a new SPDR Barclays 0-5 Year TIPS ETF on the NYSE Arca.

By Verdict Staff

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.

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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