US inflation expectations have hit 2020 highs. New US stimulus and a positive outlook mean inflation is back on the agenda.
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The Tabula monthly - December 2020
Reasons to seek US inflation protection
US inflation expectations have hit their highest level since May 2019
A new stimulus package worth $908bn is gaining bipartisan support in the US
The outlook for economic growth has improved dramatically due to positive results from large-scale vaccine trials
A stronger, more rapid rebound, coupled with a Fed that has signalled a willingness to let inflation run above the 2 per cent target on a sustained basis, has put inflation back on the agenda
Source: Tabula and Bloomberg as of 4 December 2020.
A simple but comprehensive solution to inflation exposure
Tabula's latest innovative ETF, the Tabula US Enhanced Inflation UCITS ETF, provides a new approach to inflation by providing exposure to realised and expected inflation in a single ETF, resulting in a more capital efficient vehicle for inflation protection.
2021: US inflation expectation, positioning and access tools
If you missed our webinar with Bloomberg last week click below to hear the replay now.
Our CEO MJ Lytle joined Bloomberg's Senior US Economist Yelena Shulyatyeva and Kartik Ghia (Co-Head of Systematic Strategies research Bloomberg) for a discussion on post-pandemic inflation and enhanced inflation exposure.
Fixed income in ESG: more of the same?
Fixed income has been slow to embrace ESG considerations. Investors currently have to choose between green bonds or fixed income funds with ESG filters, which typically lack a clear purpose apart from being “more ESG”.
ETFs with specific environmental or social objectives could be more compelling, and help provide much-needed variety and choice for sustainable investors.
Our CIO Jason Smith recently spoke with ETF Express and gave an update on how Tabula is approaching ESG in fixed income.
1 Performance represents the iBoxx iTraxx Europe Bond Index. 2 Performance represents the Bloomberg Barclays US Enhanced Inflation Index. 3 Performance represents the CDX North American High Yield Credit Short Index. 4 Performance represents the iTraxx-CDX IG Global Credit Steepener Index.