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In this episode of ETF Spotlight, I speak with Nancy Davis, founder & CIO of Quadratic Capital Management, about hedging against inflation.
Recent CPI and PPI readings suggest that inflation may remain at elevated levels in the coming months. Stocks have been under pressure over the past few days as investors worry that persistent inflationary pressures could force the Fed to raise interest rates more aggressively than previously expected.
Nancy manages the Quadratic Interest Rate Volatility & Inflation Hedge ETF (IVOL - Free Report) , which seeks to hedge relative interest rate movements and benefit from market stress when fixed income volatility increases, while providing the potential for enhanced, inflation-protected income.
There are several other options available to investors who want to add inflation protection in their portfolios. Commodities are generally positively correlated with inflation and offer some inflation hedge. (See: What Lies Ahead for Commodity ETFs in 2023)
High-quality stocks may also provide protection against inflation over the longer term, as these companies have pricing power and are able to grow their revenues and earnings even in an inflationary environment.
The Fidelity Stocks For Inflation ETF (FCPI - Free Report) invests in high quality companies that tend to outperform during inflationary times. Apple (AAPL - Free Report) and Microsoft (MSFT - Free Report) are its top holdings.
The Horizon Kinetics Inflation Beneficiaries ETF (INFL - Free Report) holds companies like Archer Daniels Midland (ADM - Free Report) and Bunge (BG - Free Report) that are expected to benefit from inflation.
The VanEck Inflation Allocation ETF (RAAX - Free Report) provides exposure to inflation fighting real assets through ETPs. The AXS Astoria Inflation Sensitive ETF (PPI - Free Report) targets asset classes that are expected to benefit from an inflationary environment.
Tune in to the podcast to learn more.
Make sure to be on the lookout for the next edition of the ETF Spotlight and remember to subscribe! If you have any comments or questions, please email podcast@zacks.com.
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ETF Strategies to Protect Against Inflation
In this episode of ETF Spotlight, I speak with Nancy Davis, founder & CIO of Quadratic Capital Management, about hedging against inflation.
Recent CPI and PPI readings suggest that inflation may remain at elevated levels in the coming months. Stocks have been under pressure over the past few days as investors worry that persistent inflationary pressures could force the Fed to raise interest rates more aggressively than previously expected.
Nancy manages the Quadratic Interest Rate Volatility & Inflation Hedge ETF (IVOL - Free Report) , which seeks to hedge relative interest rate movements and benefit from market stress when fixed income volatility increases, while providing the potential for enhanced, inflation-protected income.
There are several other options available to investors who want to add inflation protection in their portfolios. Commodities are generally positively correlated with inflation and offer some inflation hedge. (See: What Lies Ahead for Commodity ETFs in 2023)
High-quality stocks may also provide protection against inflation over the longer term, as these companies have pricing power and are able to grow their revenues and earnings even in an inflationary environment.
The Fidelity Stocks For Inflation ETF (FCPI - Free Report) invests in high quality companies that tend to outperform during inflationary times. Apple (AAPL - Free Report) and Microsoft (MSFT - Free Report) are its top holdings.
The Horizon Kinetics Inflation Beneficiaries ETF (INFL - Free Report) holds companies like Archer Daniels Midland (ADM - Free Report) and Bunge (BG - Free Report) that are expected to benefit from inflation.
The VanEck Inflation Allocation ETF (RAAX - Free Report) provides exposure to inflation fighting real assets through ETPs. The AXS Astoria Inflation Sensitive ETF (PPI - Free Report) targets asset classes that are expected to benefit from an inflationary environment.
Tune in to the podcast to learn more.
Make sure to be on the lookout for the next edition of the ETF Spotlight and remember to subscribe! If you have any comments or questions, please email podcast@zacks.com.