Close Menu
Fund Focus News
    Facebook X (Twitter) Instagram
    Trending
    • ‘People Might Be Underestimating Demand For Spot XRP ETFs,’ ETF Expert Says As CME XRP Futures Set Open Interest Record
    • SoftBank, Rakuten tap Japan’s booming retail demand for bonds
    • Financial advice about living trusts, capital gains and COBRA
    • What is Expense Ratio in Mutual Funds? – Money Insights News
    • Billionaires Buy 2 Magnificent Index Funds That a Wall Street Analyst Says Could Soar 132%
    • not the FTSE 100 or S&P 500)
    • Five tell-tale signs that investing money is not for you
    • Big Brother star begs fans to help raise funds for hospital treatment
    Facebook X (Twitter) Instagram
    Fund Focus News
    • Home
    • Bonds
    • ETFs
    • Funds
    • Investments
    • Mutual Funds
    • Property Investments
    • SIP
    Fund Focus News
    Home»ETFs»ETF Strategies to Play Higher-Than-Expected September Inflation
    ETFs

    ETF Strategies to Play Higher-Than-Expected September Inflation

    October 11, 2024


    The annual inflation rate in the United States slowed for a sixth successive month to 2.4% in September 2024, the lowest since February 2021, from 2.5% in August. However, figures came above forecasts of 2.3%.  The monthly core inflation rate remained at 0.3%, the same as in August but above forecasts of 0.2%. Inflation accelerated for food (2.3% versus 2.1%) and transportation (8.5% versus 7.9%).

    Against this backdrop, below we highlight a few exchange-traded fund (ETF) investing strategies that can be gainful for investors.

    Play Inflation-Fighting ETFs

    In the recent past, Wall Street saw launches of several inflation-fighting ETFs like Horizon Kinetics Inflation Beneficiaries ETF INFL. Plus, there are TIPS ETFs like iShares 0-5 Year TIPS Bond ETF STIP. For example, the underlying ICE US Treasury 0-5 Year Inflation Linked Bond Index of the STIP ETF comprises of inflation-protected U.S. Treasury bonds with remaining maturities of less than five years. The STIP ETF yields 2.74% annually.

    Play ETFs That Protect You From Higher Rates

    In reflection of the sticky inflation data and the likelihood of less rapid Fed rate cut, bond yields jumped lately. U.S. benchmark treasury yields closed at 4.09% on Oct. 10 2024, up from 3.74% recorded at the start of the month. Many Fed officials have been arguing that a measured approach in the policy easing would better control inflationary risks.

    Against this scenario, ETFs that offer protection from higher rates should be in vogue. These ETFs include Simplify Interest Rate Hedge ETF PFIX, Global X Interest Rate Hedge ETF RATE and FolioBeyond Alternative Income And Interest Rate Hedge ETF RISR (read: ETF Strategies to Follow Amid Rising Treasury Yields).

    Gold: A Better Bet?

    A stagflation-like scenario could boost safe-haven assets like gold. Gold performs well in periods of economic stagflation as investors tend to exit stocks, bonds, and cash. Investors should note that gold is often viewed as an inflation-beating asset. The last significant episode of inflation in the United States occurred from 1973 to 1979. Within this period, inflation averaged around 8.8% annually, and gold earned an average annual return of 35%, per CME Group, as quoted on Forbes. SPDR Gold Shares GLD is thus a good pick (read: 9 Top Global ETF Trends So Far This Year).

    Value Stocks: A Safer Bet

    Value stocks are often considered defensive investments because these companies normally have established businesses and stable earnings. Value stocks often pay dividends. Unlike growth stocks, value stocks tend to perform better in a high-rate environment. The Zacks Rank #2 (Buy) ETF Vanguard High Dividend Yield ETF VYM yields 2.81% annually and charges 6 bps in fees (read: Why You Should Buy Dividend ETFs Now).

    Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

    SPDR Gold Shares (GLD): ETF Research Reports

    Vanguard High Dividend Yield ETF (VYM): ETF Research Reports

    iShares 0-5 Year TIPS Bond ETF (STIP): ETF Research Reports

    To read this article on Zacks.com click here.

    Zacks Investment Research



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email

    Related Posts

    ‘People Might Be Underestimating Demand For Spot XRP ETFs,’ ETF Expert Says As CME XRP Futures Set Open Interest Record

    August 31, 2025

    not the FTSE 100 or S&P 500)

    August 30, 2025

    Ethereum ETFs Close Out August With $164 Million In Outflows

    August 30, 2025
    Leave A Reply Cancel Reply

    Top Posts

    ‘People Might Be Underestimating Demand For Spot XRP ETFs,’ ETF Expert Says As CME XRP Futures Set Open Interest Record

    August 31, 2025

    The Shifting Landscape of Art Investment and the Rise of Accessibility: The London Art Exchange

    September 11, 2023

    The Unyielding Resilience of the Art Market: A Historical and Contemporary Perspective

    November 19, 2023

    The Evolution of Art and Art Investments: A Historical Perspective on Fruitful Returns and Wealth Management

    August 21, 2023
    Don't Miss
    ETFs

    ‘People Might Be Underestimating Demand For Spot XRP ETFs,’ ETF Expert Says As CME XRP Futures Set Open Interest Record

    August 31, 2025

    Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the…

    SoftBank, Rakuten tap Japan’s booming retail demand for bonds

    August 31, 2025

    Financial advice about living trusts, capital gains and COBRA

    August 31, 2025

    What is Expense Ratio in Mutual Funds? – Money Insights News

    August 31, 2025
    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    EDITOR'S PICK

    Sip & Stroll at SoFi Stadium

    October 7, 2024

    The Ethereum ETF Soon to Hit the Market, Here is the Key Date!

    July 20, 2024

    Malaysia sees record US$86 billion of approved investments in 2024

    February 24, 2025
    Our Picks

    ‘People Might Be Underestimating Demand For Spot XRP ETFs,’ ETF Expert Says As CME XRP Futures Set Open Interest Record

    August 31, 2025

    SoftBank, Rakuten tap Japan’s booming retail demand for bonds

    August 31, 2025

    Financial advice about living trusts, capital gains and COBRA

    August 31, 2025
    Most Popular

    🔥Juve target Chukwuemeka, Inter raise funds, Elmas bid in play 🤑

    August 20, 2025

    ₹10,000 monthly SIP in this debt mutual fund has grown to over ₹70 lakh in 23 years

    June 13, 2025

    ₹1 lakh investment in these 2 ELSS mutual funds at launch would have grown to over ₹5 lakh. Check details

    April 25, 2025
    © 2025 Fund Focus News
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.