Inflation-Protected U.S. Treasury Bond Currency Hedged ETF

UTIP

Invest in a portfolio of inflation-protected US Treasuries

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Overview

Fund Objective

UTIP aims to track the performance of an index (before fees and expenses) that provides exposure to a portfolio of US Treasury Inflation-Protected Securities (‘TIPS’), hedged into AUD.

TIPS are a type of government bond issued by the US Treasury, whose face value and interest payments are adjusted for inflation, as measured by US CPI.

Benefits of UTIP

  • Inflation-protected principal and income

    TIPS provide protection from a higher inflation environment by indexing both principal and coupon payments to the US CPI.

  • Potential defensive benefits

    As part of a broader portfolio, UTIP may provide defensive benefits during times of significant global economic weakness.

  • Potential outperformance in inflationary environments

    TIPS typically outperform traditional fixed rate Treasuries of equivalent maturities when inflation is higher than expected, or when inflation expectations are on the upswing (but likewise can be expected to underperform in declining inflationary environments).

There are risks associated with an investment in UTIP, including interest rate risk, credit risk, international investment risk and inflation risk. Investment value can go up and down. An investment in the Fund should only be considered as a part of a broader portfolio, taking into account your particular circumstances, including your tolerance for risk. For more information on risks and other features of the Fund, please see the Product Disclosure Statement and Target Market Determination, both available on this website.

How to Invest

  • You can buy or sell units just like you’d buy or sell any share on the ASX.
  • Fund requires no minimum investment.

Key facts

Pricing information

Current price
Last trade*
% Change (prev day)
Bid (delayed)
Offer (delayed)

* Data is delayed by at least 20 minutes.

NAV
NAV/Unit* $25.19

* As at 20 May 2024

Profile

Net assets* ($A) $149,102,997
Units outstanding* (#) 5,920,000
Management fee and cost** (p.a.) 0.22%
Investment manager Betashares Capital Ltd
Distribution frequency Quarterly
Distribution reinvestment plan (DRP) Full or partial participation available
Registry Link Market Services

* As at 20 May 2024

* As of close of previous day
**Certain additional costs apply. Please refer to PDS.

Trading information

Bloomberg code UTIP AU
IRESS code UTIP.AXW
Market makers BNP Paribas Financial Markets SNC

Index information

Index Bloomberg Global Inflation-Linked: U.S. TIPS Total Return Index Hedged AUD
Index provider Bloomberg
Index ticker N/A
Bloomberg index ticker H01551AU Index

Portfolio characteristics

Running yield (local currency, % p.a.) 0.93
Real yield (local currency, % p.a.) 2.13
Yield to maturity (local currency, % p.a.) 4.68
Estimated FX hedging impact (% p.a.) -1.15
Average maturity (yrs) 7.27
Modified duration (yrs) 6.69
Average credit rating AA+
As at 22 May 2024

Holdings & allocation

Portfolio holdings

Name Weight (%)
UNITED STATES TREASURY INFLATION INDEXED BONDS 1.125% JAN-33 3.7%
UNITED STATES TREASURY INFLATION INDEXED BONDS 1.375% JUL-33 3.7%
UNITED STATES TREASURY INFLATION INDEXED BONDS 0.625% JUL-32 3.6%
UNITED STATES TREASURY INFLATION INDEXED BONDS 2.375% OCT-28 3.5%
UNITED STATES TREASURY INFLATION INDEXED BONDS 0.125% JAN-32 3.4%
UNITED STATES TREASURY INFLATION INDEXED BONDS 0.375% JUL-25 3.3%
UNITED STATES TREASURY INFLATION INDEXED BONDS 1.625% OCT-27 3.3%
UNITED STATES TREASURY INFLATION INDEXED BONDS 1.25% APR-28 3.2%
UNITED STATES TREASURY INFLATION INDEXED BONDS 0.125% APR-27 3.2%
UNITED STATES TREASURY INFLATION INDEXED BONDS 0.125% OCT-26 3.1%

* As at 21 May 2024. Excludes cash

Sector allocation

Sovereign Bonds
100.0%

* As of 30 April 2024

Performance

Fund returns after fees (%)

  Fund Index
1 month -1.67% -1.78%
3 months -2.32% -2.24%
6 months 2.69% 2.81%
1 year - -2.85%
3 year p.a. - -2.78%
5 year p.a. - 0.99%
10 year p.a. - 1.86%
Since inception 0.31% 0.33%
Inception date 18-Sep-23 -

* As at 30 April 2024.
Past performance is not an indicator of future performance. Returns are calculated in Australian dollars using net asset value per unit at the start and end of the specified period and do not reflect brokerage or the bid ask spread that investors incur when buying and selling units on the ASX. Returns are after fund management costs, assume reinvestment of any distributions and do not take into account tax paid as an investor in the Fund. Returns for periods longer than one year are annualised. Current performance may be higher or lower than the performance shown.

Chart

Past performance is not indicative of future performance. Please refer to "Fund returns after fees" for additional information regarding performance/return information.

Distributions

Yield information

Distribution frequency Quarterly
12 mth distribution yield* -

*As at 30 April 2024. Yield is calculated by summing the prior 12-month per unit distributions divided by the closing NAV per unit at the end of the relevant period. Yield will vary and may be lower at time of investment. Past performance is not indicative of future performance.

You can elect DRP by logging into Link’s Investor Centre. Once you are logged in, please proceed to the 'Payments and Tax' tab and select ‘Reinvestment Plans'.

Recent distributions

Ex Date Record Date Payment Date Distribution Unit ($) Annual Distribution Return (%) (1)
2-Apr-24 3-Apr-24 17-Apr-24 $0.11165 -
2-Jan-24 3-Jan-24 17-Jan-24 $0.14375 -

Announcements

ASX announcements: UTIP

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