Tabula launches thematic fixed income ETF providing exposure to US inflation
Tabula Investment Management Limited (Tabula) has launched the first ETF in the market that provides exposure to both realised and expected inflation in a single index.
The Tabula US Enhanced Inflation UCITS ETF (TINF) combines a TIPS portfolio with exposure to US inflation expectations (breakevens).
“ETFs are a natural choice for inflation exposure”, says Tabula CEO Michael John Lytle. “Inflation is an escalating concern among institutional investors, jumping up in their focus list over the last three months. Existing inflation ETFs force investors to choose between realised inflation and inflation expectations. For many investors, both are important measures and a more efficient solution is to combine them, which is what we have done with the Tabula US Enhanced Inflation UCITS ETF.”
Tabula has worked with Bloomberg to create the new Bloomberg Barclays US Enhanced Inflation Index. Historic analysis of the index shows that it can provide positive performance when inflation is rising.
The Tabula US Enhanced Inflation UCITS ETF (USD) EUR-Hedged share class was listed on Borsa Italiana on 27 October with ticker TINE and has an ongoing charge of 0.34 per cent. The USD share class of the ETF will be listed on the London Stock Exchange on 3 November with ticker TINF and has an ongoing charge of 0.29 per cent.