iShares unveils inflation protected ETF in US

The fund, which targets the domestic TIPS curve through securities with less than five years to maturity, is the only ETF offering access to the shortest end of the curve. Unlike other TIPS ETFs, the securities constituting the iShares fund are held until maturity, paying out inflation-adjusted income through the fund's distributions and then returning principle to the fund at maturity. These proceeds are then used to buy more securities. This mechanism, iShares claims, ensures a greater percentage of investor return is made up inflation adjusted income. As well as compensating fo...