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4 Sector ETFs & Stocks to Play U.S. June Inflation Data

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Annual inflation rate in the United States accelerated to 5.4% year over year in June of 2021 from 5% in May, hitting a fresh high since August of 2008, and well above forecasts of 4.9%.  The latest uptick in inflation was the largest 12-month increase.

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.9% sequentially in June on a seasonally adjusted basis after rising 0.6% in May, the U.S. Bureau of Labor Statistics reported. This marked the largest one-month change since June 2008 when the index rose 1.0%.

Inflation has been on an uphill ride this year thanks to low base effects from 2020 and as the economic recovery picks up, business restrictions relax and demand jumps amid widespread vaccination and fiscal stimulus.

Below we highlight a few areas and their related ETFs that may gain from this inflation report.


The energy sector saw a price gain of 24.5% in June. Gasoline logged a 45.1% price gains. Energy commodities and fuel oil also registered an increase of 44.2% and 44.5%, respectively. This calls for a look at this energy ETF.

Energy Select Sector SPDR ETF (XLE - Free Report) – The underlying Energy Select Sector Index includes companies from the following industries: oil, gas & consumable fuels and energy equipment & services. The fund has a Zacks Rank #2 (Buy).

Kinder Morgan Inc. (KMI - Free Report) – The Zacks Rank #3 (Hold) company is a leading midstream energy infrastructure provider in North America.


Price of used cars and trucks rose 45.2% in June, while used cars and trucks registered 5.3% price gains in the month.

First Trust NASDAQ Global Auto ETF (CARZ - Free Report)  – The underlying NASDAQ OMX Global Auto Index is designed to track the performance of the largest and most liquid companies engaged in manufacturing of automobiles.

AutoZone Inc. (AZO - Free Report) – The Zacks Rank #3 company is one of the leading specialty retailers and distributor of automotive replacement parts and accessories in the United States.

Transportation Services

Inflation in transportation services was 10.4% in June.

SPDR S&P Transportation ETF (XTN - Free Report) – The underlying S&P Transportation Select Industry Index represents the transportation segment of the S&P Total Market Index.

CryoPort Inc. (CYRX - Free Report) – The Zacks Rank #2 company operates as a provider of shipping solutions comprising cold chain frozen shipping system for transporting biological, environmental and other temperature sensitive materials at temperatures below minus 150° Celsius.

Real Estate

Shelter costs rose 2.6% in June. Low rates and higher demand for rental accommodation amid rising home prices probably have boosted the shelter costs.

SPDR Dow Jones REIT ETF (RWR - Free Report)

The underlying Dow Jones U.S. Select REIT Index provides a measure of real estate securities that serve as proxies for direct real estate investing, in part by excluding securities whose value is not always closely tied to the value of the underlying real estate. It yields 3.12% annually.

Simon Property Group Inc. (SPG - Free Report)

The Zacks Rank #3 company is a leading publicly-traded real estate investment trust (REIT) in the United States, which is engaged in acquiring, owning and leasing of shopping, dining, entertainment and mixed-use destinations. The company’s real estate portfolio consists of malls, Premium Outlets and The Mills and International Properties.

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