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25/08/2009 Nyse Arca: A new ETF

NYSE Euronext (NYX) announced that its wholly-owned subsidiary, NYSE Arca, began trading the….

PIMCO 1-5 Year U.S. TIPS Index Fund (Ticker: STPZ) on Friday, August 21, 2009. The ETF is sponsored by PIMCO.

The investment objective of the fund is to provide total return that closely corresponds, before fees and expenses, to the total return of The Merrill Lynch 1-5 Year US Inflation-Linked Treasury Index  (the “Underlying Index”).  The Underlying Index is an unmanaged index comprised of TIPS (Treasury Inflation Protected Securities) with a maturity of at least 1 year and less than 5 years.

The PIMCO 1-5 Year U.S. TIPS Index Fund (Ticker: STPZ) is the first ETF to focus specifically on the short maturity segment of the TIPS market and aims to offer investors a high degree of protection against the immediate effects of inflation on their portfolio. Shorter-dated TIPS have historically shown a significantly higher correlation with current inflation and lower volatility relative to an index that covers the entire TIPS maturity spectrum. The fund’s benchmark is the Merrill Lynch 1-5 Year US Inflation-Linked Treasury Index.

“Inflation-hedging should play a strategic role in investors’ asset allocation, particularly as we head toward a ‘New Normal’ where lower growth, increasing U.S. government debt and unprecedented fiscal stimulus could over time raise the potential for higher price pressures than have been seen in recent decades,” said Mr. Bhansali.

Source: ETFWorld.com – NYSE Euronext (NYX) / Pimco


 

 


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