While I think the ETF industry has become saturated with many products that serve little purpose for almost all investors, a new ETF launched today which I believe actually has some value. For U.S. investors looking for a way to protect themselves against global inflation as well as getting some non-U.S. dollar exposure, today's launch of the The SPDR DB International Government Inflation-Protected Bond ETF (AMEX: WIP) is welcome news. While U.S. investors search for ways to diversify out of the greenback, with inflation starting to rear its ugly head abroad, traditional global bonds funds have become less desirable. With inflation in countries like Australia surging, the ability to get an inflation protected bond is great. With rising inflation expectations, local bonds prices in many of these countries will fall. If that happens then those holding global bond funds, may lose money. This new ETF helps out with that problem.

According to Murray Coleman: " The fund follows the Deutsche Bank Global Government ex-U.S. Inflation Linked Bond Capped Index. In the past 12 months, that benchmark has returned 20.9%. About 12% of those gains were currency related and another 5% was associated with inflation adjustments. Another 2% came from coupon interest payments. Less than 1% came from price appreciation."

Clearly the name of the game here is still currency diversification, but 5% returns associated with inflation adjustments is nice to.

If you are looking to further diversify your portfolio, this new ETF may be for you.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer's fund has no position in any stock mentioned, as of 3/19/08.