iShares Index‑Linked Gilts

ETF description

This ETF is designed to give investors exposure to a selection of UK government bonds, known as gilts, that are linked to inflation. These types of bonds are unique because their value increases with inflation, which helps protect the purchasing power of the money invested. By investing in this ETF, individuals can gain access to a diversified collection of these inflation‑linked gilts.

This ETF may appeal to investors who are concerned about rising prices and want a way to safeguard their investments against inflation. It can also be attractive to those seeking stable, predictable income, as these bonds generally pay interest regularly. However, it is important for investors to recognize that the value of bonds can fluctuate based on interest rates and market conditions.

Issuer details

iShares ETFs are issued and managed by BlackRock, the world’s largest asset management company.

With 800+ products globally and over $2trn in assets (as at June 2024), iShares ETFs are a flexible, low‑cost way for investors to gain exposure to various market segments, including fixed income, emerging markets and broad‑based indexes.

Index details

The ETF tracks the Bloomberg UK Government Inflation‑Linked Bond Index which offers a unique combination of inflation protection and government‑backed security via index‑linked gilts. By providing returns adjusted for inflation, they ensure that the purchasing power of the investment remains intact, which is particularly beneficial for long‑term investment strategies and retirement planning.