The fund will, as its name implies, focus on the inflation-linked bond market. Inflation-linked bonds are securities structured to provide protection against inflation by linking their principal to the rate of inflation. Inflation fears aren’t just a U.S. phenomenon; many countries fear its effects in the wake of the trillions of dollars that have been printed around the world. [Retired? How to Cope With a Bond ETF Bubble.]
The inflation-linked bonds that the new fund will invest in are economically tied to at least three developed and emerging market countries. [Risk Easing In Corporate Bond ETFs.]
Tisha Guerrero contributed to this article.
Tisha Guerrero contributed to this article.