Does anyone know the difference between these Blackrock funds?
These are all iShares TIPS ETFs, but with very performance graphs over 5 yr periods. Their 0-5 yr maturities offer approx. 2.9% distributions after ongoing charges. The HL link to FundsLibrary details displayed the wrong fund details to me.
Also there are the other TIPS funds, that cover all inflation adjusted treasuries.
TIPS ( all TIPS, me thinks )
I should like a little TIP for my portfolio. It’s this or gold.
One of them is a USD fund so when you look at the performance chart, you are also seeing the effect of currency exchange rates. The other is a GBP hedged fund, which attempts to neutralise the effect of the exchange rate. The hedged version will cost slightly more in fees although actually I see the difference is quite tiny (0.10% versus 0.12%). Look up the two funds on a site like morningstar.co.uk or go direct to iShares to see which is which.
Thanks for the explanation. I had looked at the iShares site but did not see it. I didn’t look properly
The 0.12% fee is lessened because the distribution is 2.96% in unhedged, and 3.01% in hedged.
However the transaction fee is beneficial in the unhedged -0.0025%
( Although I could just invest in inflation instead of TIPS! )
Also worth looking at the TIPS 5Y Break-Even Rate.
Inflation over the next 5 years would need to average >2.5% for the TIPS to perform better than the regular govt bond.