Inflation sensitive ETF 'PPI' aims to hedge rising prices
Investors looking to bet on rising inflation have a new exchange-traded fund with a ticker to match: PPI.
AXS Investments, a leading asset manager providing access to alternative investments, launched its first Exchange-Traded Fund on Dec.30 : $AXS Astoria Real Assets ETF (PPI.US)$
According to AXS Investments official websites, $AXS Astoria Real Assets ETF (PPI.US)$ is an actively managed, broadly diversified ETF that seeks long-term capital appreciation in inflation-adjusted returns. Renowned ETF experts at Astoria Portfolio Advisors manage PPI by investing where the opportunities are: cyclical stocks, commodities and TIPS.
About 85% of the fund's holdings are equities -- with oil and gas, banking, and iron and steel the top industry groups -- and roughly 59% are in U.S. assets.
The Opportunity
Inflation rose to 40-year highs in 2021, and Wall Street is expecting it to be a key risk in 2022. The word "inflation"is the most frequently cited term in a group of screened by Bloomberg, and it's often paired with descriptors like"higher" or "rising." That's created demand for investments that claim-to hedge against rising prices. All ETFs with the word "inflation"in either their name or description recorded last year, according to Bloomberg data.
PPI is a 'diversified one-ticker solution to inflation.' Most investors will just default and go into TIPS, but there are some other good options too that investors miss, like equities and commodities.”
--- Bloomberg Intelligence ETF analyst Athanasios Psarofagis said.
An expansive multi-asset class approach offers investors a compelling way to dynamically hedge inflation and potentially generate positive, real rate adjusted investment results.”
--- Astoria Advisors founder and CIO John Davi said in a press release.
Do you think inflation will continue to go up in 2022? Will you invest in PPI to hedge the inflation risk?
Source: AXS Investment, Bloomberg
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kc003 : How does it work?
A282828A : Good
Kwa Hock : Bloomberg AXS Investments
Lao Wang sells melons
ScottWeiss kc003 : The portfolio is picked based on stocks and or securities that the fund managers believe will perform better as inflation goes higher
Nikkei McGill : $Ethereum (ETH.CC)$
Revelation 6 ScottWeiss : Not only do they believe that they will do better, but they have done better in the past during times of higher inflation. Past performance is not always indicative of future results but it is a good start. Even if you don’t invest in $PPI, at least take the time to look at what they are investing in and it could give you an idea of how you might change your investment style to meet the new market conditions and deal with inflation. Looking at cryptocurrency might be another way all though it’s much riskier in my opinion. Just saying.
Revelation 6 Nikkei McGill : $ETH seems to be the train to board if your going to ride the rails of crypto in to the future. As long as they own the “Super Highway” that connects all the crypto “cities” they can continue to charge the outrageous gas fees to move around. At this point it seems the other creators are willing to play along and the cost is prohibitive to every day retail investors. This won’t last forever. V.B. doesn’t care though, he has 101 problems and this isn’t one of them.