New Global and International TIPS ETFs From iShares Print
Written by TFB   
June 12, 2011
June 12, 2011

IndexUniverse reports that iShares launched a global and an international inflation-linked bonds ETFs.

The global inflation-linked bonds ETF (ticker GTIP) invests in both US and non-US inflation linked bonds. The international inflation-linked bonds ETF (ticker ITIP) invests only in non-US inflation linked bonds. The expense ratio on both ETFs is 0.40%.

An existing ETF for international inflation-linked bonds is WIP from State Street, with an expense ratio of 0.50%.

It's not clear to me how inflation in other countries will affect a US investor. An increase in import prices will be reflected in the US CPI. Investing in TIPS in the US will protect the investors from such rise in the CPI. Inflation in foreign countries may also cause the value of their currencies to go down, offsetting the (nominal) gains from inflation adjustment.