The iShares $ TIPS UCITS ETF (ITPS) is an Ireland-domiciled fixed-income ETF managed by BlackRock through its iShares platform. ITPS is the ticker for the fund's GBP 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. government inflation-linked securities known as Treasury Inflation-Protected Securities (TIPS).

TIPS are securities issued by the U.S. Treasury whose principal value is adjusted for inflation. This structure is designed to preserve the real value of the investment as consumer prices change, while interest payments are calculated based on the inflation-adjusted principal.

Composition / Exposure Profile

ITPS primarily invests in:

• Treasury Inflation-Protected Securities (TIPS).

• U.S. federal government bonds linked to inflation.

• U.S. dollar-denominated sovereign fixed-income securities.

Geographic exposure is concentrated in the United States because the securities represented by the benchmark are issued by the U.S. Treasury.

Although TIPS provide contractual inflation protection through adjustments to their principal value, their market prices can still fluctuate. Their performance can be particularly sensitive to real interest rates, inflation expectations, and U.S. monetary policy.

ITPS covers different maturities within the TIPS market, giving the portfolio greater interest-rate sensitivity than strategies focused exclusively on very short-term securities.

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 GBP under ITPS and in USD under IDTP. The trading currency does not change the portfolio's underlying economic exposure or provide currency hedging.

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.

ITPS 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) was launched in 2006 to provide exposure to the U.S. inflation-protected government bond market. Since its launch, the fund has maintained a passive strategy linked to the Bloomberg U.S. Government Inflation-Linked Bond Index, tracking TIPS across different maturities.

Throughout its history, the fund's performance has reflected changes in real interest rates, inflation expectations, and U.S. monetary policy, all of which can directly influence the prices and yields of inflation-protected Treasury securities.

Additional Information

iShares $ TIPS UCITS ETF USD Acc (Ireland) is an exchange-traded fund (ETF), with assets under management totaling $3.57 billion.

Over the past 12 months, iShares $ TIPS UCITS ETF USD Acc recorded a return of -2.47%, with its price trading between $249.21 and $348.71 during the same period.

The ETF is traded under the ticker ITPS.