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Inflation ETF (RINF) Hits New 52-Week High

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For investors seeking momentum, Inflation Expectations ETF (RINF - Free Report) is probably on radar. The fund just hit a 52-week high and is up 21% from its 52-week low price of $28.84/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:

RINF in Focus

ProShares Inflation Expectations ETF seeks to mitigate the risk of rising rates through a built-in interest rate hedge using U.S. Treasury futures. It offers a portfolio of 30-year Treasury Inflation-Protected Securities (TIPS) bonds by tracking the performance of the FTSE 30-Year TIPS (Treasury Rate-Hedged) Index. ProShares Inflation Expectations ETF charges 97 bps in annual fees (see: all the Inflation-Protected Bond ETFs here).

Why the Move?

The inflation ETF has been an area to watch lately given that inflation is not showing any sign of slowing down. The hotter-than-expected inflation pushed up chances of the Federal Reserve’s fourth 75 bps interest rate hike next month. As such, RINF is gaining strength on further rate hike expectations.

More Gains Ahead?

Currently, RINF might remain strong given a weighted alpha of 16.00 and 20-day volatility of 20.03%. As a result, there is definitely still some promise for risk-aggressive investors, who want to ride on this surging ETF.


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