We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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.
U.S. Inflation at a 40-Year High: 4 Sector ETFs to Win
Read MoreHide Full Article
The annual inflation rate in the United States accelerated to 7.5% in January of 2022, marking a new high since June of 1982, well above market forecasts of 7.3%. Energy led to the jump while labor shortages and supply disruptions also caused a slump. Notably, inflation was 0.6% in January sequentially.
Inflation was hot for shelter, food, new vehicles, used cars and trucks, apparel and medical care services, per tradingeconomics. Vanguard Real Estate Index Fund ETF Shares (VNQ - Free Report) , AdvisorShares Restaurant ETF (EATZ - Free Report) , First Trust NASDAQ Global Auto Index Fund (CARZ) and iShares U.S. Healthcare Providers ETF (IHF - Free Report) are some of the sector ETFs that stand to gain from the latest inflation report.
Real Estate
The index for shelter increased 0.3% in January as the rent index jumped 0.5% and the owners’ equivalent rent index rose 0.4%.
Vanguard Real Estate ETF (VNQ - Free Report) – The Vanguard Real Estate ETF seeks to track the performance of the MSCI US Investable Market Real Estate 25/50 Index.
Apparel
The price index for apparel increased 1.1% in January after logging the same increase in December. Prices increased 5.3% year over year.
SPDR S&P Retail ETF (XRT) – The underlying S&P Retail Select Industry Index represents the retail sub-industry portion of the S&P TMI. The S&P TMI tracks all the U.S. common stocks listed on the NYSE, AMEX, NASDAQ National Market and NASDAQ Small Cap exchanges. The Retail Index is a modified equal weight index.
Restaurants
The food away from home index rose 0.7% sequentially in January after rising 0.6% in December. The index for full-service meals jumped 0.7%. The index for food away from home rose 6.4% year over year, the largest one-month increase since January 1982. This points to the fact that restaurants are charging higher.
AdvisorShares Restaurant ETF (EATZ - Free Report) – The AdvisorShares Restaurant ETF is an actively managed exchange-traded fund that seeks to achieve its investment objective by investing at least 80% of its net assets in securities of companies that derive at least 50% of their net revenue from the restaurant business.
Medical Care Services
The medical care index rose 0.7% sequentially in January. The index for hospital services increased 0.5% and the index for prescription drugs rose 1.3%, while the index for physicians’ services declined 0.1%.
iShares U.S. Healthcare Providers ETF (IHF - Free Report) – The underlying Dow Jones U.S. Select HealthCare Providers Index of the fund measures the performance of health care providers’ sub-sector of the U.S. equity market. It includes health maintenance organizations, hospitals, clinics, dentists, opticians, nursing homes plus rehabilitation & retirement centers.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
U.S. Inflation at a 40-Year High: 4 Sector ETFs to Win
The annual inflation rate in the United States accelerated to 7.5% in January of 2022, marking a new high since June of 1982, well above market forecasts of 7.3%. Energy led to the jump while labor shortages and supply disruptions also caused a slump. Notably, inflation was 0.6% in January sequentially.
Inflation was hot for shelter, food, new vehicles, used cars and trucks, apparel and medical care services, per tradingeconomics. Vanguard Real Estate Index Fund ETF Shares (VNQ - Free Report) , AdvisorShares Restaurant ETF (EATZ - Free Report) , First Trust NASDAQ Global Auto Index Fund (CARZ) and iShares U.S. Healthcare Providers ETF (IHF - Free Report) are some of the sector ETFs that stand to gain from the latest inflation report.
Real Estate
The index for shelter increased 0.3% in January as the rent index jumped 0.5% and the owners’ equivalent rent index rose 0.4%.
Vanguard Real Estate ETF (VNQ - Free Report) – The Vanguard Real Estate ETF seeks to track the performance of the MSCI US Investable Market Real Estate 25/50 Index.
Apparel
The price index for apparel increased 1.1% in January after logging the same increase in December. Prices increased 5.3% year over year.
SPDR S&P Retail ETF (XRT) – The underlying S&P Retail Select Industry Index represents the retail sub-industry portion of the S&P TMI. The S&P TMI tracks all the U.S. common stocks listed on the NYSE, AMEX, NASDAQ National Market and NASDAQ Small Cap exchanges. The Retail Index is a modified equal weight index.
Restaurants
The food away from home index rose 0.7% sequentially in January after rising 0.6% in December. The index for full-service meals jumped 0.7%. The index for food away from home rose 6.4% year over year, the largest one-month increase since January 1982. This points to the fact that restaurants are charging higher.
AdvisorShares Restaurant ETF (EATZ - Free Report) – The AdvisorShares Restaurant ETF is an actively managed exchange-traded fund that seeks to achieve its investment objective by investing at least 80% of its net assets in securities of companies that derive at least 50% of their net revenue from the restaurant business.
Medical Care Services
The medical care index rose 0.7% sequentially in January. The index for hospital services increased 0.5% and the index for prescription drugs rose 1.3%, while the index for physicians’ services declined 0.1%.
iShares U.S. Healthcare Providers ETF (IHF - Free Report) – The underlying Dow Jones U.S. Select HealthCare Providers Index of the fund measures the performance of health care providers’ sub-sector of the U.S. equity market. It includes health maintenance organizations, hospitals, clinics, dentists, opticians, nursing homes plus rehabilitation & retirement centers.