UBS ETF Bloomberg Barclays TIPS 10+ UCITS ETF

Issuer: UBS

Asset Class: Fixed Income

TER: 10bps

Trading Currency: GBX

Pays Income: False

Listing Date: 25 Nov 2016

Ticker: UBTL

ISIN: LU1459802754

This investment vehicle provides targeted exposure to the long-term segment of the U.S. Treasury Inflation-Protected Securities (TIPS) market. It is designed to track the performance of an index composed of inflation-protected U.S. Treasury bonds with remaining maturities of ten years or more. These securities are unique in that their principal value adjusts with changes in the Consumer Price Index (CPI), offering a direct hedge against inflation. The fund physically holds the underlying government bonds, ensuring direct ownership of the assets and transparently reflecting the performance of the specified index. This structure makes it a straightforward tool for investors seeking to preserve the real value of their capital over the long run.

This fund is particularly suitable for investors with a long-term horizon who are concerned about the erosive effects of inflation on their fixed-income portfolios. It can serve as a core holding for those seeking to diversify their bond allocation and add a layer of protection against rising price levels. Because the fund focuses on longer-maturity bonds, it will exhibit higher sensitivity to changes in real interest rates (duration risk) compared to shorter-term TIPS funds. Therefore, it is aimed at investors who can tolerate the associated interest rate volatility in exchange for potentially higher real returns and a robust inflation hedge. It is also an effective instrument for liability-driven investors, such as those planning for retirement, who need to ensure their investments outpace inflation to meet future spending needs.