IVOL: Enhanced TIPS ETF Targeting The Yield Curve And Market Stress
The Quadratic Interest Rate Volatility and Inflation Hedge ETF (IVOL) targets inflation-protected income, yield curve steepening, and market stress via TIPS and OTC options.
IVOL has effectively benefited from periods of steepening curve and market stress, but has lost significantly more the rest of the time.
The fund's multi-objective strategy has delivered underwhelming results versus simpler alternatives like PFIX.
IVOL offers a sophisticated hedge-fund-like approach, but its high expense ratio and mixed track record limit its appeal.
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See all our investmentshere » TheQuadratic Interest Rate Volatility and Inflation Hedge ETF (IVOL)is an actively managed income fund launched on May 13, 2019.
It is a hedge fund-like ETF with three objectives: IVOL has a 12-month trailing yield of 3.92% and a net expense ratio of 0.98%.
It is a small yet liquid ETF, with about $212 million in assets under management and $3.4 million in average daily volume.Quadratic Capital Managementis a small asset management firm focused on innovative interest-rate strategies using OTC options.
Its main products are IVOL and the Quadratic Deflation ETF (BNDD).
IVOL primarily invests in Treasury Inflation-Protected Securities (“TIPSâ€) and hedges them against relative variations of interest rates (i.e., variations in the slope of the U.S.
Treasury that have principal and interest payments linked to inflation measured by the Consumer Price Index (“CPIâ€).
TIPS exposure may be obtained through ETFs such as the Schwab U.S.
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