Focus on ETFs benefiting from inflation as prices soar

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Inflation is one of the major concerns of investors lately. The CPI index for February jumped at an annual rate of 7.9%, the highest since January 1982. Gasoline, housing and food prices were the main contributors to the increase.

Russia and Ukraine are among the world’s largest suppliers of petroleum, natural gas, wheat, corn, edible oils, and metals like aluminum, nickel, and palladium. The war further pushed up energy and commodity prices and disrupted global transportation networks.

The resurgence of Covid-19 and further shutdowns in China, due to its zero-tolerance policy, are adding even more disruption to global supply chains.

Before the start of the war in Ukraine, many experts had predicted that inflation would cool in the spring as supply chains improved after the disruption caused by the pandemic. It now looks like higher inflation could persist for longer.

Investors might turn to ETFs that aim to hedge against or benefit from inflation. The actively managed Horizon Kinetics Inflation Beneficiaries ETF (INFL) invests in companies that are expected to benefit from inflation. Texas Pacific Land (TPL) Charles River Laboratories International (CRL) are its top holdings.

The Fidelity Stocks for Inflation ETF (FCPI) holds companies with attractive valuations, high-quality profiles and positive momentum, in sectors that tend to outperform in inflationary environments. Apple (AAPL) and Microsoft (MSFT) are its top holdings.

The VanEck Inflation Allocation ETF (RAAX) is an actively managed fund of funds that provides exposure to inflation-fighting assets. It holds ETFs that invest in real assets, including commodities, resource stocks, REITs, MLPs, gold, and bitcoin. Among his holdings are Invesco Optimum Yield Diversified Commodity Strategy No. K1 ETF (PDBC) and Energy Select Sector SPDR ETF (XLE).

To learn more about these ETFs, please watch the short video above.

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Apple Inc. (AAPL): Free Inventory Analysis Report

Microsoft Corporation (MSFT): Free Stock Analysis Report

Charles River Laboratories International, Inc. (CRL): Free Stock Analysis Report

Energy Select Sector SPDR ETF (XLE): ETF Research Reports

Invesco Optimum Yield Diversified Commodity Strategy No K1 ETF (PDBC): ETF Research Reports

Texas Pacific Land Corporation (TPL): Free Stock Analysis Report

VanEck Inflation Allocation ETF (RAAX): ETF Research Reports

Fidelity Stocks for Inflation ETF (FCPI): ETF Research Reports

Horizon Kinetics Inflation Beneficiaries ETF (INFL): ETF Research Reports

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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