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.
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