ETF Watch: iShares Plans Hedged Bond Fund

Proposed actively managed ETF will hedge away inflation risk.

iShares has filed for an ETF that will cover the investment-grade corporate bond space while hedging away inflation risk. Despite being actively managed, the iShares Inflation Hedged Corporate Bond ETF will primarily invest in the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) and use inflation swaps to mitigate the influence of inflation.

While LQD is an index-based product and will represent the bulk of the fund, the exposure to inflation swaps will be actively managed. The fund can also invest in products such as Treasury inflation-protected securities, total return swaps, credit default swaps and Treasury futures, the prospectus said. The fund can further invest in other ETFs, government securities and other investment vehicles.

The filing did not include a ticker, expense ratio or listing exchange.

Contact Heather Bell at [email protected].