European fixed income ETF specialist Tabula Investment Management has debuted what it claims is the first ETF in the market to provide exposure to both realised and expected inflation in a single index.
The Tabula US Enhanced Inflation Ucits ETF combines a TIPS portfolio with US inflation expectations. It will track an inflation index that Tabula has created in partnership with Bloomberg and will be listed on both the Borsa Italiana and London Stock Exchnage for euro and dollar share classes respectively.
Tabula chief executive Michael John Lyte said that the ETF launch is based on the idea that inflation has become an escalating concern among institutional investors with economists forecasting that the pandemic-driven collapse in consumer demand combined with central bank easing and fiscal stimulus will have a profound impact on inflation.
And while ETFs may be a natural choice for inflation exposure, investors are typically forced to choose between realised inflation and inflation expectations, said Lyte.
“For many investors, both are important measures and a more efficient solution is to combine them, which is what we have done,” he added.
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