iShares US Inflation‑linked Bonds 0 – 5 Years

ETF description

This ETF offers investors exposure to US Treasury inflation‑protected bonds. Their value is linked to inflation, meaning they can provide some protection against rising levels of US inflation. This ETF buys US government bonds which have maturities up to 5 years. This means that the bonds will be paid back within a 5‑year timeframe.

This ETF might appeal to investors who are looking for a lower risk investment. US government bonds are generally considered to be lower risk compared to other types of investments, as they are backed by the US government. Bonds with shorter maturities are also considered to be less risky than bonds with longer maturities, as they have less time until the bonds are paid back, and are therefore less sensitive to interest rate movements.

Because the ETF holds bonds issued by the US government, the fund’s value can be influenced by changes in interest rates, inflation, and the perceived stability of the US government. If interest rates rise, the market value of the bonds typically falls, and vice versa.

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 US Inflation‑linked Bonds 0 – 5 Years index provides investors with exposure to short‑term US Treasury Inflation‑Protected Securities (TIPS), offering protection against inflation. With its focus on short‑term maturities and inflation‑adjusted returns, the index serves as a valuable tool for investors seeking to hedge against inflation and preserve purchasing power.