New Listing

Tabula launches US inflation ETF with a twist

Combines TIPS with breakevens

Tom Eckett

Michael John Lytle

Fixed income ETF issuer Tabula Investment Management has launched the world’s first ETF that combines Treasury Inflation-Protected Securities (TIPS) with exposure to US inflation expectations through breakevens.

The Tabula US Enhanced Inflation UCITS ETF (TINF) is set to list on the London Stock Exchange on 3 November with a total expense ratio (TER) of 0.29%.

TINF will track the newly created Bloomberg Barclays US Enhanced Inflation index which provides positive performance when inflation is rising.

Michael John Lytle (pictured), CEO of Tabula, said a spike in inflation is a growing concern among institutional investors.

Lytle commented: “ETFs are a natural choice for inflation exposure. Existing inflation ETFs, however, 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.”

BlackRock offers the biggest TIPS ETF on the European market, the iShares $ TIPS UCITS ETF (ITPS), which has $2.4bn assets under management (AUM).

Jason Smith, CIO at Tabula, added: “Forecasts of where inflation might go have rarely been as diverse as they are today.

“The economic consequences of the COVID-19 pandemic, and policy reactions to it, have led simultaneously to forecasts of deflation, as well as forecasts of inflation rates moving sharply higher.”

The firm has also listed the Tabula US Enhanced Inflation UCITS ETF EUR (TINE) on the Borsa Italiana with a TER of 0.34%.

Tabula has been expanding its fixed income ETF range this year. Last month, the firm launched a global investment-grade steepener bond ETF, the Tabula iTraxx-CDX IG Global Credit Steepener UCITS ETF (TCRS).

The issuer also brought to market an ETF that takes a short position on North American high yield corporate debt, the Tabula North American CDX High Yield Credit Short UCITS ETF (TABS) which listed on the LSE in July.

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