Inflation-Protected U.S. Treasury Bond Currency Hedged ETF
- Cash & Fixed income
Invest in a portfolio of inflation-protected US Treasuries
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).
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* | $24.89 |
* As at 23 April 2024
Profile
| Net assets* ($A) | $139,407,811 |
|---|---|
| Units outstanding* (#) | 5,600,000 |
| 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 23 April 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.) | 2.32 |
| Yield to maturity (local currency, % p.a.) | 5.08 |
| Estimated FX hedging impact (% p.a.) | -1.14 |
| Average maturity (yrs) | 7.12 |
| Modified duration (yrs) | 6.55 |
| Average credit rating | AA+ |
Holdings & allocation
Portfolio holdings
| Name | Weight (%) |
|---|---|
| UNITED STATES TREASURY INFLATION INDEXED BONDS 1.125% JAN-33 | 3.6% |
| UNITED STATES TREASURY INFLATION INDEXED BONDS 1.375% JUL-33 | 3.6% |
| 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 0.375% JUL-25 | 3.4% |
| UNITED STATES TREASURY INFLATION INDEXED BONDS 0.125% JAN-32 | 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 | 3.1% |
| UNITED STATES TREASURY INFLATION INDEXED BONDS 0.125% OCT-26 | 3.1% |
* As at 26 April 2024. Excludes cash
Sector allocation
| Sovereign Bonds | 100.0% |
|---|
* As of 28 March 2024
Performance
Fund returns after fees (%)
| Fund | Index | |
|---|---|---|
| 1 month | 0.56% | 0.73% |
| 3 months | -0.44% | -0.40% |
| 6 months | 3.66% | 3.79% |
| 1 year | - | -1.09% |
| 3 year p.a. | - | -1.75% |
| 5 year p.a. | - | 1.41% |
| 10 year p.a. | - | 2.20% |
| Since inception | 2.02% | 2.15% |
| Inception date | 18-Sep-23 | - |
* As at 28 March 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 28 March 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 | - |