Everyone ETF, in the name or description of which the word "inflation" is present, this year demonstrated the inflow of funds, according to the data, compiled by Bloomberg.
18 exchange-traded funds, the purpose of which is to make a profit with an increase in inflation, at the moment attracted $35,5 billion, which corresponds 37% of their assets. This is another illustration of the growing fears of inflation and rising interest rates in the investment community.. Representatives FED have been claiming for several months, that price pressure can be attributed to temporary factors. Nevertheless, anxiety arises from supply chain disruptions, pressure on the raw material market and problems in the labor market.
Short-term inflation expectations among American consumers are at an all-time high, and the yield on 30-year Treasuries, protected from inflation (TIPS), hit a record low last Monday, as investors sought refuge for their assets.
"Most people see inflation with their own eyes in life and do not believe the Fed's statements about its short-term nature." — comments senior ETF analyst at Bloomberg Intelligence. “If you look at the bonds, then TIPS funds are among the best this year ".
At the same time, some of the American funds, most vulnerable to price and rate increases, lose money. Фонд iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) with capitalization $39 billion lost almost $15 billion — more than any other exchange-traded fund, and its profitability was -0,7%.
Citigroup strategists claim, that although inflation rates should continue to rise over the next few months, trend, probably, will peak in February 2022 of the year, when the Fed will cut back on asset purchases and address supply chain gaps.
"Is it temporary or not, but inflation is real, she is in front of my eyes, and financial advisors do not have many alternatives to solve the problem / Managing inflation — this is not growth or investment, this is the preservation of purchasing power " — experts from ETF Trends say.