is at hand. “No one is worried about inflation right now,” says Mirko Mikelic, senior portfolio manager at Fifth Third Asset Management. But there are concerns that the Fed’s policy of “quantitative easing” — code for printing boatloads of money — and the federal government’s stimulus program might result in a sharp rise in inflation several years down the road, he says,” Tom Sullivan Reports From Barron’s.
“Investors in exchange-traded funds appear to have just such fears. The iShares Barclays TIPS ETF (ticker: TIP), which invests in U.S. Treasury inflation-protected securities and has an expense ratio of just 0.2%, has had the biggest net cash inflows into any fixed-income category so far this year, gaining $7 billion through the end of September, according to Rye Brook, N.Y.-based IndexIQ,” Sullivan Reports.
“Commodity ETFs, another avenue to hedge against inflation, took in $25 billion through September. The biggest gainer of any ETF so far this year is SPDR Gold Trust (GLD), with $12.3 billion of net inflows, according to IndexIQ. Its expense ratio is 0.4%,” Sullivan Reports.
“ETF sponsors, naturally, have noticed. ALPS Advisors launched the Thomson Reuters/Jefferies CRB Global Commodity Equity ETF (CRBQ), subadvised by Arrow Investment Advisors, in mid-September. The fund tracks an index of 145 commodity producers, and has an expense ratio of 0.65%. As reported in this column, the fund allows investors to bypass futures-based commodity exposure while still playing in the commodity universe.,” Sullivan Reports.
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