iShares Barclays TIPS Bond (TIP)

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A new TIPS type fund

ProShares, the country’s fourth most successful exchange traded fund (ETF) company,1 today announced the launch of ProShares 30 Year TIPS/TSY Spread (NYSE: RINF) and ProShares Short 30 Year TIPS/TSY Spread (NYSE: FINF), the first ETFs designed to provide exposure to breakeven inflation,2 a widely followed measure of inflation expectations. The ETFs list on NYSE Arca today.

The two new ProShares ETFs are:
• RINF — seeks to match the performance of the Dow Jones Credit Suisse 30-Year Inflation Breakeven Index, before fees and expenses.
• FINF — seeks to provide the inverse of the daily performance of the Dow Jones Credit Suisse 30-Year Inflation Breakeven Index, before fees and expenses.

“Many investors are focused on inflation and closely follow breakeven inflation, a common yardstick for inflation expectations,” said Michael L. Sapir, Chairman and CEO of ProShare Advisors LLC, ProShares’ investment advisor. “We are pleased to offer investors the first ETFs linked to this important economic indicator.”

Breakeven inflation aims to isolate the market’s expectation of inflation implied by the difference in yields between Treasury Inflation Protected Security (TIPS) and Treasury bonds. The Dow Jones Credit Suisse 30-Year Inflation Breakeven Index tracks the returns of a long position in 30-year TIPS and a short position in Treasury bonds.3, 4