State Street Global Advisors is pitching the first international inflation-protected exchange-traded fund as an offering that provides a wide range of benefits. The firm says the SPDR DB International Government Inflation-Protected Bond ETF will give investors a unique mix of currency exposure, dividend, inflation-protection and price appreciation. The fund will offer emerging markets exposure—30% of its holdings will be in those countries.
Tom Anderson, v.p., said that the ETF meets a demand among clients for inflation protection, a demand that has recently led to high net inflows for commodities-linked funds (FA, 3/17). Anderson said the launch also fits the trend for international fixed-income offerings in the ETF space (FA, 1/21). He said the new fund builds on the SPDR Lehman International Treasury Bond ETF, which was launched in October and already has $700 million in assets.
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