iShares $ TIPS UCITS ETF

What this fund is

iShares $ TIPS UCITS ETF is an exchange-traded fund (ETF) from iShares, traded under the ticker ITPG (ISIN IE00BDZVH859). In a single purchase you get a diversified basket of holdings rather than a stake in just one business. In plain terms it is about lending to governments and companies in return for regular interest, which tends to be steadier than shares but grows more slowly, spread across its target market. Its largest holdings include TREASURY (CPI) NOTE, TREASURY (CPI) NOTE and TREASURY (CPI) NOTE. Spread across roughly 52 holdings (the ten largest ≈ 31.5%), no one position makes or breaks the fund.

Its biggest country exposures are ~100% United States. Its heaviest sectors are ~100% Government and ~0% Other. Funds like this are often used as the steadier, lower-swing part of a portfolio — the ballast that cushions the ups and downs of shares. Its ongoing charge (TER) is 0.12% a year — about €12 a year on a €10,000 holding, taken automatically from the fund. It is a distributing share class — dividends are paid to you as cash rather than reinvested, and over the last year it paid out roughly 2.3% (its trailing yield).

It holds the underlying investments directly (physical replication); it is domiciled in Ireland and UCITS-regulated, a European standard built to protect everyday investors and trades in GBP. Its price has swung about 4.5% over the past year, which describes how much its price tends to move rather than whether it is good. It launched in 2018. As with any investment, its value can go down as well as up, and past performance is not a guide to future results. (Fund data sourced from iShares.)