F/m Investments launched the F/m Long-Term Treasury Inflation-Protected Security ETF (Nasdaq: RTHY), focused exclusively on 30-year U.S. inflation-protected Treasury bonds.
The fund tracks the Bloomberg U.S. TIPS 25+ Year Equal Weight Index, which currently holds the five most recently issued 30-year Treasury Inflation-Protected Securities, or TIPS. These bonds have principal that adjusts for inflation. F/m said pairing RTHY with its ultrashort TIPS ETF (Nasdaq: RBIL) allows investors to combine inflation-linked exposure at both ends of the maturity range.
F/m Investments has launched the F/m Ultrashort Treasury Inflation-Protected Security ETF (RBIL), the first ETF to invest exclusively in ultrashort TIPS with an average duration well under one year. This passively managed ETF aims to provide inflation protection while minimizing interest rate risk, targeting the $7 trillion in money markets and $18 trillion in bank deposits.
Unlike other TIPS ETFs that may underperform during inflation spikes due to their duration, RBIL's ultrashort duration is designed to solve this problem. The ETF holds TIPS with 13 months or less to maturity and distributes income through regular dividends, addressing the "phantom income" challenge of direct TIPS ownership.
Backed by the full faith and credit of the United States Treasury, RBIL offers a low-risk, low-volatility solution for preserving purchasing power. The ETF is launching on NASDAQ with $50 million in seed capital, continuing F/m Investments' partnership with NASDAQ and Jane Street.