Global investment management firm PIMCO has launched the PIMCO 1-5 Year U.S. TIPS Index Fund, a combination of three Treasury Inflation-Protected Securities exchanged-traded funds designed to focus on the short maturity segment of the TIPS market.
"Inflation-hedging should play a strategic role in investors' asset allocation, particularly as we head toward a 'New Normal' where lower growth, increasing U.S. government debt and unprecedented fiscal stimulus could over time raise the potential for higher price pressures than have been seen in recent decades," said Vineer Bhansali, managing director and portfolio manager. "Our introduction of TIPS ETFs complements PIMCO's existing TIPS offerings, enabling us to extend our TIPS expertise to investors who prefer index strategies, or who prefer some of the unique attributes of ETFs."
PIMCO plans to launch two more TIPS ETFs in September to fill out its lineup of inflation-protecting investments. The PIMCO 15+ Year U.S. TIPS Index Fund will focus on long-dated TIPS, and the PIMCO Broad U.S. TIPS Index Fund, which will give investors the combined benefits of TIPS exposure across the maturity spectrum.