inflation ETFs

[anitya]

I learned about this today and thought it was interesting 


The Quadratic Interest Rate Volatility and Inflation Hedge ETF (IVOL)

[Capital]

IVOL's Prospectus Stated Objectives
The investment seeks to hedge relative interest rate movements, whether these movements arise from falling short-term interest rates or rising long-term interest rates, and to benefit from market stress when fixed income volatility increases, while providing the potential for enhanced inflation-protected income. The fund is actively managed and seeks to achieve its investment objective primarily by investing, directly or indirectly, in a mix of U.S. Treasury Inflation-Protected Securities ("TIPS") and long options tied to the shape of the U.S. interest rate curve. It is non-diversified.

Interesting concept. Looking at it's holdings it owns shares in Schwab US Tips EFT and Call Options on the CMS 10Y-2Y. Even though it only has two investing vehicles it is somewhat complicated due to the Options. More about the CMS 10Y-2Y below. I have used the Treasury 10-2Y chart to gauge the viabliity and leverage yields for mREITS and BCDs in the past. Both of those investment types borrow on the short side and lend on the long side to increase yield on equity. Distribution yield on this is 3.48% in times when Tips are not yielding anything near that.


www.investopedia.com/terms/c/cms.asp

fred.stlouisfed.org/series/T10Y2Y

[runforfun]

anitya,
Horizon Kinetics Inflation Beneficiaries (INFL) is another EFT that seeks to play off inflation, rather benefit from rising inflation. Recently launched so not much history. Interesting concept given I don't follow/believe the Gov't tracked CPI accurately captures true inflation. 

"The Horizon Kinetics Inflation Beneficiaries ETF is an actively managed ETF that seeks long-term growth of capital in real (inflation-adjusted) terms. It seeks to achieve its investment objective by investing primarily in domestic and foreign equity securities of companies that are expected to benefit, either directly or indirectly, from rising prices of real assets (i.e., assets whose value is mainly derived from physical properties such as commodities) such as those whose revenues are expected to increase with inflation without corresponding increases in expenses."

[retiredat48]

Thanks for headsup runforfun.

Is INFL a new startup fund...2021?

R48

[runforfun]

retiredat48,

Yes, it launched in Jan 2021 so no real track record. More info on the Horizon Kinetics website horizonkinetics.com/products/etf/infl/. They've been around for awhile. 

Expense ratio is high, but I like the strategy (holdings) of this active ETF and plan to build a position.