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ETF Strategies to Hedge Against Inflation

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  • (2:30) - Should Investors Be Concerned About Rising Interest Rates?
  • (8:15) - What Are The Expectations For Inflation In The Near Future?
  • (15:00) - Understanding How Treasury Inflation-Protected Securities Work
  • (18:30) - Quadratic Interest Rate Volatility and Inflation ETF: IVOL
  • (25:35) - Horizon Kinetics Investment Philosophy and Outlook On Inflation and Interest Rates
  • (35:20) - What Investments Will Protect Your Portfolio From Inflation?
  • (41:15) - Horizon Kinetics Inflation Beneficiaries ETF: INFL
  • (54:50) - How Does INFL Fit Into Your Investment Portfolio?


In this episode of ETF Spotlight, we focus on strategies that protect from inflation. Markets have been quite volatile in the past few weeks, as investors are worried about rising yields and higher inflation expectations.

This year’s steep rise in yields had resulted in a rotation into cyclical sectors, which would benefit from the economic rebound, and away from high-flying tech stocks.

Yesterday’s CPI report was in-line with estimates and alleviated some of inflation concerns but signs of inflation are already showing up in many parts of the economy. The $1.9 trillion fiscal stimulus package could further revive inflation later this year.

My first guest is Nancy Davis, founder & CIO of Quadratic Capital Management. Nancy manages the Quadratic Interest Rate Volatility & Inflation Hedge ETF (IVOL - Free Report) . She was named one of the “100 Most Influential Women in U.S. Finance” by Barron’s last year.

IVOL, which made its debut in May 2019, has gathered over $2.3 billion in assets. The actively managed fund seeks to hedge relative interest rate movements, and to benefit from market stress when fixed income volatility increases, while providing the potential for enhanced, inflation-protected income. It has outperformed the iShares TIPS Bond ETF (TIP - Free Report) over the past year.

In the second part, I am joined by James Davolos, Portfolio Manager of the Horizon Kinetics Inflation Beneficiaries ETF (INFL - Free Report) . The actively managed fund, which launched in January, has already raised more than $90 million. 

INFL invests in companies that are positioned to benefit in an inflationary environment. Texas Pacific Land Corporation (TPL - Free Report) , Charles River Laboratories (CRL - Free Report) and Intercontinental Exchange (ICE - Free Report) are among its top holdings.

Tune into the podcast to learn more. Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email

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