RINFProShares Inflation Expectations ETF
RINF Fund Description
The ProShares Inflation Expectations tracks an index with long exposure to US TIPS and short exposure to US Treasurys of equal maturity, gaining when yields on Treasurys increase relative to those on TIPS.
RINF Factset Analytics Insight
RINF provides investors with a way to gain from increases in the market’s expectation of inflation, but high costs and low assets reduce its appeal. All else equal, Treasury yields will rise relative to TIPS (Treasury inflation-protected securities) yields when market participants expect more inflation. Since yields and returns move inversely, RINF goes long TIPS and short Treasurys of similar maturity to capture this spread. One key facet of this approach is that it only gains when the spread changes; that is, when the market changes its mind. It provides no gains whatsoever if the market’s expectation of inflation stays the same, and it will lose if spreads tighten. Still, such an approach would presumably hold some appeal in an era of extremely loose monetary policy. However, RINF has few takers. Launched on 1/10/12, the fund still holds few assets and goes for days without trading. Short strategies aren’t cheap to run, and the fund’s fee coupled with wide spreads from poor liquidity add up to high all-in costs.
Note: Prior to April 18, 2016 RINF tracked the Credit Suisse 30-Year Inflation Breakeven Index under the name ProShares 30 Year TIPS/TSY Spread. The index change is not expected to have a material impact on the investment objective.
RINF CHARTS AND PERFORMANCE
RINF Summary Data
RINF Portfolio Data
RINF Index Data
RINF Fund Structure
RINF Tax Exposures
RINF Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of RINF. RINF is rated a N/A out of 5.