Inflation has been a problem for multiple years now, and while it has been coming down, it’s still keeping interest rates high. There are types of companies which have benefited from rising inflation, such as those involved with commodities and which offer good and services which businesses can’t do without.
There’s even an exchange-traded fund (ETF) which came out in late 2021 which focuses on “inflation-sensitive assets.” The AXS Astoria Inflation Sensitive ETF (NYSE Arca:PPI) is an actively managed fund which means that its fees will be higher than other funds and that the stocks within the fund may change periodically. Currently, the fund has an expense ratio of 0.75%, which is fairly high.
The fund focuses on the U.S. market primarily, with 55% of its portfolio made up with stocks based in that country, followed by Japan at 13% and Canada at 9%. As for industries, oil and gas stocks represent its largest holding group at 25%, followed by investment trusts at just over 20%, and aerospace and defense at a little under 9%.The focus is on industrials, energy, and materials, which are likely to benefit from rising prices. And as long as global economies are in good shape, demand should remain relatively resilient in those sectors.
Since 2022, the fund has generated returns of 24%. And when including its dividend payments, the total return is up around 32%. That’s more than double the S&P 500’s performance as its total returns are a little over 15% over that time frame.
Investors would have fared well with the Astoria ETF and it could still be a good place to park your money while inflation remains high.
