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01 Sep 2016

Lyxor adds new TIPs ETF to their core fixed income range

Lyxor has expanded their range of core fixed income ETFs again with the launch of the Lyxor US TIPS (DR) UCITS ETF. Listing on the London Stock Exchange, Lyxor is offering the fund in USD (TIPU LN) and GBP (TIPG LN) share classes. This new exposure means Lyxor now offers investors the choice of US, UK or European Government Bond exposures, and inflation expectations.

Lyxor’s recent focus on inflation has been driven by investor concern over the long term prospects for inflation. The US economy is improving, the labour market is strengthening, and a rate hike may still be a factor in the long term. For bond investors concerned by the prospect of rising US inflation, Lyxor’s new ETF provides exposure to the performance of US Treasury Inflation Protected Securities (TIPS), which increase their coupon and nominal value in line with inflation to protect investors.

 In Europe, US TIPS ETFs have gathered over €1bn in net new assets this year1. This follows a wider trend for Government Bond ETFs, which have attracted €4.7bn in new assets as investors sought safe haven assets2. At 0.09%, the Lyxor US TIPS (DR) UCITS ETF has the lowest Total Expense Ratio of any TIPS ETF in Europe, continuing Lyxor’s highly competitive pricing strategy for core fixed income3.

Carl-Christian Höeg, Director, ETF Scandinavia at Lyxor said: “Our new TIPS ETF adds to our range of low cost, physical ETFs. With the full complement of traditional and inflation linked US and UK Government Bond exposures, we can provide investors with the tools they need to navigate this increasingly complex interest rate environment”.

Lyxor has been steadily building up its core fixed income ETF range in recent years to reach number three in Europe for Fixed Income ETFs with over EUR 11bn1 in assets under management, and number two for Physical Fixed Income ETFs4.

ENDS

 1Source: Lyxor International Asset Management. Data as of July 22nd, 2016.

2Source: Lyxor International Asset Management. Data as of July 29th, 2016.

3Source: Lyxor International Asset Management. Data as of August 17th, 2016.

4Source: Lyxor International Asset Management. Data as of June 30th, 2016.