It is a passive bond ETF that tracks an FTSE index composed of inflation-linked government bonds issued by developed and emerging market governments outside the US. Principal and interest are tied to each country's inflation, providing protection against rising prices.

It suits investors who want to diversify into foreign government bonds while guarding against inflation risk outside the US.

It is managed by State Street using a passive (index-tracking) approach.

The fund tracks an index composed of inflation-linked government bonds issued by developed and emerging market governments outside the US. Principal and interest are tied to each country's consumer prices, preserving real value when inflation rises. By spreading assets across foreign inflation-linked bonds issued in multiple currencies, the fund guards against price risk outside the US.

• Exposure to non-US inflation-linked government bonds
• Inflation protection through multi-currency diversification

Assets under management (AUM) stand at $457.6M, and the expense ratio is 0.50% per year.

Compared with US inflation-linked bond ETFs such as TIP and SCHP, the main points of comparison are investment region and currency exposure.

Inflation-linked government bonds are driven by inflation expectations and real interest rates, and they tend to hold up better than nominal bonds when inflation rises. Foreign inflation-linked bonds add exchange rate fluctuations, so they tend to be more volatile than US inflation-linked bonds.

Fund flows into foreign inflation-linked bonds diverge depending on the global inflation outlook and the strength of the dollar, and money sometimes flows in as an inflation hedge when inflation concerns grow. It is also worth watching how performance differs by country depending on currency and interest rate gaps.

Its strengths are foreign inflation protection and regional diversification, while exchange rate fluctuations, real interest rate risk, and emerging market exposure are considerations.

To narrow exposure to US inflation-linked bonds, direct substitutes include TIP and VTIP, and these are simpler if you want to hedge only US inflation without currency exposure. To broaden into foreign government bonds in general without currency hedging, products such as IGOV and BWX are also worth comparing. The three funds shown in the table, TIP, SCHP, and STIP, all invest in US inflation-linked bonds and therefore differ in having no currency exposure. This ETF stands apart by diversifying across non-US foreign inflation-linked government bonds.

Here are the points to review before investing in WIP. Foreign inflation protection is appealing, but currency, real interest rates, and emerging market exposure need to be checked in advance. It is also advisable to compare it with US inflation-linked bond and foreign government bond products.

Exchange rate moves and rising real interest rates are the main variables for short-term performance, and there is also country risk from exposure to emerging market government bonds. Even an inflation-protection asset can fall in price depending on the real interest rate environment.

It is a suitable candidate for investors who want to guard against inflation outside the US. To hedge only US inflation without currency exposure, consider products such as TIP and VTIP, and if you want diversification into foreign inflation-linked bonds, it is advisable to compare this product alongside them before choosing.