2 of the Best ETFs to Buy When Inflation Is Running Hot
Higher inflation rates have caused investors to rethink their portfolios.
Overview
Inflation rates had been trending lower at the start of the year, with the Consumer Price Index (CPI) at around 2.4% in February. Then the war in Iran started and prices shot higher, with the CPI surging to 4.2% in May. The latest CPI numbers show an inflation rate of 3.4% in August, and with gas prices still rising, inflation is likely to remain elevated.
Not only has it led to an interest rate increase, with more potentially on the way, but it has forced many investors to rethink the portfolio strategies they established at the start of the year. Rising inflation has slowed economic growth and been a drag on corporate earnings over the years.
Details
But there are some investments that perform well in cycles with rising inflation, including these two exchange-traded funds (ETFs).
Source
Originally published at www.fool.com.