IndexIQ has introduced two ETFs designed to hedge against rising inflation.
The IQ CPI Inflation Hedged ETF (CPI) attempts to hedge against price spikes by providing a return above the rate of inflation as measured by the Consumer Price Index (CPI). The fund’s total annual fee including costs of underlying funds is 0.65 percent.
“With many forecasters believing that we are about to enter an extended period of greater inflationary pressures, we believe the time is right for a new approach to protecting wealth by seeking real return at or above the rate of inflation,” says Adam Patti, IndexIQ’s CEO.