The iShares $ TIPS UCITS ETF (IDTP) is an Ireland-domiciled fixed-income ETF managed by BlackRock through its iShares platform. IDTP is the ticker for the fund's U.S. dollar trading line on the London Stock Exchange.

The fund seeks to track the Bloomberg U.S. Government Inflation-Linked Bond Index, a benchmark comprising U.S. Treasury Inflation-Protected Securities (TIPS).

IDTP provides exposure to the U.S. inflation-linked government bond market. The fund follows a passive investment strategy and uses physical replication through representative sampling, holding a selection of securities designed to closely track the characteristics and performance of its benchmark.

With TIPS, the principal value of each security is adjusted based on inflation as measured by the U.S. Consumer Price Index (CPI). Because interest payments are calculated on the inflation-adjusted principal, both the value of the securities and their interest payments incorporate changes in the price level.

Composition / Exposure Profile

IDTP's portfolio is concentrated in Treasury Inflation-Protected Securities issued by the U.S. government and denominated in U.S. dollars. Unlike ETFs focused on a specific maturity segment, IDTP provides exposure to TIPS across different portions of the U.S. real yield curve.

The portfolio is almost entirely exposed to the U.S. Treasury. Fund performance is therefore primarily influenced by real interest rates, inflation expectations, and conditions in the U.S. government bond market.

Although TIPS have their principal values adjusted for inflation, this does not mean the ETF is protected against investment losses. Changes in real interest rates can affect the market value of the underlying securities and, consequently, the fund's share price.

Structure and Costs

The fund and share class have the U.S. dollar as their base currency. On the London Stock Exchange, the accumulating share class trades in USD under IDTP and in GBP under ITPS. The same share class also has additional trading lines on European exchanges.

The ETF has a total expense ratio (TER) of 0.10% per year, uses physical replication through representative sampling, and is domiciled in Ireland. It operates as part of iShares II plc under the UCITS framework.

IDTP follows an accumulating income policy. Interest and other income generated by portfolio securities are therefore reinvested within the fund rather than periodically distributed to shareholders.

History and Evolution of the ETF

The iShares $ TIPS UCITS ETF USD (Acc) (IDTP) was launched in 2006 to provide exposure to U.S. Treasury Inflation-Protected Securities.

Since its launch, the fund has maintained a passive strategy linked to the Bloomberg U.S. Government Inflation-Linked Bond Index, using representative sampling to track the performance of the U.S. TIPS market.

Throughout its history, IDTP's performance has primarily reflected changes in U.S. real interest rates, inflation expectations, and Federal Reserve monetary policy.

Additional Information

iShares $ TIPS UCITS ETF USD Acc (Ireland) is an exchange-traded fund (ETF), with assets under management totaling $3.59 billion.

Over the past 12 months, iShares $ TIPS UCITS ETF USD Acc recorded a return of -2.37%, with its price trading between $249.35 and $259.85 during the same period.

The ETF is traded under the ticker IDTP.