We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Inflation is one of the biggest concerns for investors this year. According to Bank of America’s latest Global Fund Manager Survey, professional investors now see inflation and not Covid as the biggest ‘tail risk’ for markets.
The Consumer Price Index for April rose 4.2%, versus consensus estimate for an increase of 3.6%. This was the sharpest increase since September 2008 and raised concerns that the US economy is overheating thanks to accelerating vaccine rollout, and massive fiscal and monetary stimulus.
It remains to be seen whether inflation is driven by temporary factors related to the pandemic, as the Federal Reserve says, or we are witnessing a historic shift after decades of low inflation. If you’re worried about rising inflation, it makes sense to add some ETFs to your portfolio that hedge against the possibility of rising prices.
Popular inflation hedges include gold, commodities, real estate, natural resource stocks and Treasury inflation-protected securities (TIPS). However, most TIPS have negative yields currently. Stocks with strong pricing power also tend to perform well during period of rising inflation.
The iShares North American Natural Resources ETF (IGE - Free Report) provides exposure to oil and gas, mining, and forestry companies. Exxon (XOM - Free Report) , Chevron (CVX - Free Report) and Newmont (NEM - Free Report) are among its top holdings.
The Horizon Kinetics Inflation Beneficiaries ETF (INFL - Free Report) invests in companies that could increase revenue in an inflationary environment. The Invesco DB Commodity Index Tracking Fund (DBC - Free Report) holds futures tracking energy, precious metals, industrial metals and agriculture commodities.
To learn more about these ETFs, please watch the short video above.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
3 ETFs to Protect Against Inflation
Inflation is one of the biggest concerns for investors this year. According to Bank of America’s latest Global Fund Manager Survey, professional investors now see inflation and not Covid as the biggest ‘tail risk’ for markets.
The Consumer Price Index for April rose 4.2%, versus consensus estimate for an increase of 3.6%. This was the sharpest increase since September 2008 and raised concerns that the US economy is overheating thanks to accelerating vaccine rollout, and massive fiscal and monetary stimulus.
It remains to be seen whether inflation is driven by temporary factors related to the pandemic, as the Federal Reserve says, or we are witnessing a historic shift after decades of low inflation. If you’re worried about rising inflation, it makes sense to add some ETFs to your portfolio that hedge against the possibility of rising prices.
Popular inflation hedges include gold, commodities, real estate, natural resource stocks and Treasury inflation-protected securities (TIPS). However, most TIPS have negative yields currently. Stocks with strong pricing power also tend to perform well during period of rising inflation.
The iShares North American Natural Resources ETF (IGE - Free Report) provides exposure to oil and gas, mining, and forestry companies. Exxon (XOM - Free Report) , Chevron (CVX - Free Report) and Newmont (NEM - Free Report) are among its top holdings.
The Horizon Kinetics Inflation Beneficiaries ETF (INFL - Free Report) invests in companies that could increase revenue in an inflationary environment. The Invesco DB Commodity Index Tracking Fund (DBC - Free Report) holds futures tracking energy, precious metals, industrial metals and agriculture commodities.
To learn more about these ETFs, please watch the short video above.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>