iShares extends inflation-linked bond ETF range

iShares, the exchange-traded fund (ETF) arm of Barclays Global Investors (BGI), plans to extend its inflation-linked bond ETF range, as inflation pressures continue to amount in global markets. At present, the iShares inflation-linked ETFs listed on the London Stock Exchange include iShares Euro Inflation Linked Bond, iShares £ Index-linked Gilts and iShares $ Tips.

“Most investors have a desire to preserve the real value of their accumulated wealth especially as they approach the time when that wealth is required to fund current liabilities,” says Alex Claringbull, senior fixed income portfolio manager for iShares. He explains that in this environment, inflation linked bonds are the only asset class that offers investors a direct hedge against inflation, by providing a known real rate of return during the term of the bond.