Invest In These ETF’s To Survive Inflation Effectively

inflation“Inflation is a lot like the weather. There inevitably will be storms at some point, but no one can predict very far in advance exactly when or how severe. Some experts are convinced that a rise in prices will be the end product of stimulus packages, bank bailouts, budget deficits and economic recovery. Their belief is not universal, and timetables are pure conjecture. Nonetheless, that hypothesis is worth some consideration by any investor with a well-rounded portfolio,” Andrew Leckey Reports From Press Democrat.

“The bright side of inflation is that it means stocks are going to do well,” pointed out Tyler Bartlett, a financial advisor with Merriman Inc. in Seattle. “The reality is that today’s stock market has already factored inflation into its pricing anyway.” From a psychological standpoint, Bartlett acknowledged, bailouts and “the printing of money” that’s taken place have many investors fearful of rampant inflation around the bend. But like the weather, inflation can come in different forms.

“The inflation we’re likely to see next will be commodity-based rather than the wage inflation we saw in the 1970s,” predicted John Derrick, director of research for U.S. Global Investors in San Antonio. “To survive inflation effectively, he therefore recommends the exchange-traded funds Vanguard Small Cap Value (VBR), iShares Russell Microcap Index (IWC) and Vanguard Value ETF (VTV). Exchange-traded funds, or ETFs, are traded on exchanges just like stocks,”  Leckey Reports

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Here is a look at some details of the ETF’s  below:

The investment (VBR) seeks to track the performance of a benchmark index that measures the investment return of small-capitalization value stocks. The fund employs a passive management investment approach designed to track the performance of the MSCI US Small Cap Value index, a broadly diversified index of value stocks of smaller U.S. companies. It attempts to replicate the target index by investing all, or substantially all, of assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index.

TOP 10 HOLDINGS (VBR) ( 5.30% OF TOTAL ASSETS)  
 
Company Symbol % Assets
AGL RESOURCES INC (AGL) 0.52
APTAR GROUP INC (ATR) 0.53
ATMOS ENERGY CP (ATO) 0.54
OGE ENERGY CP (OGE) 0.56
PIEDMONT NAT GAS CO (PNY) 0.48
REALTY INCOME CP (O) 0.5
SEAGATE TECHNOLOGY (STX) 0.75
UNIVERSAL HLTH SVC B (UHS) 0.46
VALSPAR CORP (VAL) 0.48
WESTAR ENERGY INC (WR) 0.48

 

The investment (IWC) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Russell Microcap index. The fund invests at least 90% of assets in the securities of the underlying index. It uses a representative sampling strategy to try to track the Russell microcap index. The index is a capitalization-weighted index and includes companies ranging in total market capitalization from approximately $50 million to $550 million and represents approximately 3% of the market capitalization of listed U.S. equity securities.

TOP 10 HOLDINGS (IWC) ( 2.34% OF TOTAL ASSETS)  
 
Company Symbol % Assets
COMFORT SYS USA INC (FIX) 0.23
Computer Programs and Systems, (CPSI) 0.23
Momenta Pharmaceuticals, Inc. (MNTA) 0.24
MWI Veterinary Supply, Inc. (MWIV) 0.22
Neogen Corporation (NEOG) 0.24
Prospect Capital Corporation (PSEC) 0.24
SCHWEITZER MAUDIT (SWM) 0.24
Southside Bancshares, Inc. (SBSI) 0.23
VIVUS, Inc. (VVUS) 0.24
Westfield Financial, Inc. (WFD) 0.23

 

The investment (VTV) seeks to track the performance of a benchmark index that measures the investment return of large-capitalization value stocks. The fund employs a passive management investment approach designed to track the performance of the MSCI US Prime Market Value index, a broadly diversified index of the stocks of large U.S. companies. It attempts to replicate the target index by investing all, or substantially all, of assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index.

TOP 10 HOLDINGS (VTV) ( 34.37% OF TOTAL ASSETS)  
 
Company Symbol % Assets
AT&T INC. (T) 4.15
CHEVRON CORP (CVX) 3.82
EXXON MOBIL CP (XOM) 9.69
GEN ELECTRIC CO (GE) 2.98
Intel Corporation (INTC) 2.34
JP MORGAN CHASE CO (JPM) 2.78
JOHNSON AND JOHNS DC (JNJ) 2.04
PFIZER INC (PFE) 2.57
VERIZON COMMUN (VZ) 2.4
WYETH (WYE) 1.6

 

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