- (1:30) - Breaking Down The Current State of Inflation Right Now
- (5:30) - What Is Best Way To Gauge Inflation?
- (9:50) - Can Investors Still Expect A Soft Landing From The Fed?
- 11:30) - What Are The Risks of Investing Into TIPS?
- (14:40) - Quadratic Intereste Rate Volatility and Inflation Hedge ETF: IVOL
- (20:10) - Should You Be Increasing Your Fixed Income Investments?
- (24:20) - Episode Roundup: FCPI, INFL, RAAX
- Podcast@Zacks.com
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, 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 invests in high quality companies that tend to outperform during inflationary times. Apple AAPL and Microsoft MSFT are its top holdings.
The Horizon Kinetics Inflation Beneficiaries ETF INFL holds companies like Archer Daniels Midland ADM and Bunge BG that are expected to benefit from inflation.
The VanEck Inflation Allocation ETF RAAX provides exposure to inflation fighting real assets through ETPs. The AXS Astoria Inflation Sensitive ETF PPI 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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Get it free >>Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Archer Daniels Midland Company (ADM) : Free Stock Analysis Report
Bunge Limited (BG) : Free Stock Analysis Report
VanEck Inflation Allocation ETF (RAAX): ETF Research Reports
Quadratic Interest Rate Volatility and Inflation Hedge ETF (IVOL): ETF Research Reports
Fidelity Stocks for Inflation ETF (FCPI): ETF Research Reports
Horizon Kinetics Inflation Beneficiaries ETF (INFL): ETF Research Reports
AXS Astoria Inflation Sensitive ETF (PPI): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
