TIPs Bond ETF Planned

Goldman Sach’s proposed fund will offer protection from an expected rise in inflation.

Reviewed by: Staff
Edited by: Staff

With inflation expectations for 2018 as high as 3%, it’s no surprise Goldman Sachs would file for a TIPS ETF now. The Goldman Sachs Access Inflation Protected USD Bond ETF will track an index from FTSE.

The fund will invest primarily in inflation-protected, fixed-rate notes and bills that are issued by the U.S. Treasury, denominated in U.S. dollars, have at least $5 billion outstanding and have one year or more to maturity. The underlying index is rebalanced monthly.

The fund uses a representative sampling approach to replicate the index’s performance, and may also engage in securities lending, the prospectus notes.

There are a dozen TIPS ETFs available to U.S. investors, the largest being the iShares TIPS Bond ETF (TIP), with $24.6 billion in assets under management. Goldman’s fixed-income offering currently includes three other products, targeting the corporate high-yield and corporate spaces as well as the ultra-short-term Treasury market.

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

Contact Heather Bell at [email protected]