The Amundi Index Breakeven Inflation USD 10Y UCITS ETF (BINFU) is listed on Euronext Paris in USD and Euronext Amsterdam in EUR with an ongoing charge figure (OCF) of 0.16%.
BINFU replicates the Markit iBoxx USD 10-Year Breakeven Inflation (futures) index, offering exposure to the US 10-year breakeven inflation.
It calculates the breakeven inflation by estimating the yield spread which is taking long positions in US treasury inflation-protected securities (TIPS) and a short position in treasury note futures contract with 10-year maturities.
Amundi says the launch follows client demand for a long-term investment product offering exposure to an inflation asset class without exposure to real interest rate movements.
Nicolas Fragneau (pictured), head of ETF product specialist at Amundi, said: “Looking at the market conditions, we believe that the US inflation is in a positive spot mainly due to the base effect on oil prices.
“We also observe other supportive effects: The Federal Reserve's intervention and its decision to ease its monetary policy in a 'preventive' manner through a further reduction in its key rate should boost demand and thus increase inflation.”