Allspring files a real-return ETF at 0.40%, undercutting bigger rivals

Allspring, on Nov. 12, filed the Allspring Real Return ETF with total annual operating expenses of 0.40% and no fee waiver.

Allspring has run the strategy since Feb. 28, 2003, in the Allspring Real Return Fund, which had $207.6 million in assets as of Nov. 12 and charges a net expense ratio of between 0.40% and 0.76% across three share classes.

Like the mutual fund, the ETF seeks returns that exceed the rate of inflation over the long term. The prospectus caps debt at 70% of total assets, stocks at 70% and commodities at 25%. High-yield debt is capped at 20% of total assets. The prospectus names the mutual fund's existing managers: Petros Bocray, David Kowalske Jr., Rushabh Amin and Matthias Scheiber.

Two real-return ETFs already trading are larger than that $207.6 million mutual fund, and both cost more than 0.40%. State Street Multi-Asset Real Return ETF RLY had $1.40 billion in assets as of Nov. 12 and a gross expense ratio of 0.50%. VanEck's October 2026 fact sheet for VanEck Real Assets ETF RAAX lists total net assets of $1.41 billion, a gross expense ratio of 0.71% and a net ratio of 0.55%.

Discount to some mutual fund share classes

Of the three classes in the Allspring Real Return Fund Sept. 1, 2026 summary prospectus, only Class R6 has a net expense ratio of 0.40%. Class R6, ticker IPBJX, has a gross expense ratio of 0.61%, and the shares are sold without a sales charge. Allspring has capped Class R6 at 0.40% only through Aug. 31, 2027.

Class A, ticker IPBAX, has a gross ratio of 0.97% and a net ratio of 0.76%, before a front-end sales charge of up to 4.50%. Investments of $500,000 or more skip that front-end charge and generally pay 1% if the shares are redeemed within 18 months.

Institutional Class, ticker IPBNX, is capped at 0.45% through Aug. 31, 2027. The summary prospectus sets a $1 million minimum for that class, which may be reduced or eliminated for some investors.

Shareholders of the Real Return Fund are not being moved into the ETF. The filing registers a new fund rather than converting the one they hold and proposes to become effective 75 days after Nov. 12.

Allspring Disciplined International Equity ETF

The same day, Allspring filed the Allspring Disciplined International Equity ETF, with total annual operating expenses of 0.27% and no waiver. It proposes to become effective 75 days after Nov. 12.

The fund seeks long-term capital appreciation. Under normal circumstances, it invests at least 80% in foreign stocks and at least 80% in developed markets, which Allspring defines as the markets in the MSCI EAFE Index, and no more than 20% in emerging-market stocks. The foreign-stock minimum can be changed only with 60 days' notice to shareholders.

Allspring already runs the approach in its Disciplined International Developed Markets Equity strategy, which also seeks to outperform the MSCI EAFE Index (Net).