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Best ETFs for High Inflation and Rising Rates

  • (1:15) - Stock Market Sell Off: Are We Close To The Bottom?

  • (12:05) - FlexShares Suite of Quality Factor ETFs: QDF, QLV & QLC

  • (17:20) - How Should Investors Prepare For Higher Inflation

  • (20:00) -  FlexShares Morningstar Global Upstream Natural Resources Index Fund: GUNR

  • (25:10) - FlexShares STOXX Global Broad Infrastructure Index Fund: NFRA

  • (30:25) - How To Position Your Fixed Income Investments During Rising Rates

  • Podcast@Zacks.com

 

In this episode of ETF Spotlight, I speak with Chris Huemmer, senior investment strategist for FlexShares ETFs at Northern Trust Asset Management, about investing in the current market environment.

Per Flex Shares research, value, quality, and dividend yield look attractive in rising rate environments due to their shorter “duration.” These factors significantly outperformed the broader equity indexes during the past four Fed rate hike cycles.

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Take a look at ETFs like the FlexShares US Quality Large Cap ETF QLC, the FlexShares US Quality Low Volatility ETF QLV and the FlexShares Quality Dividend ETF QDF,

Apple AAPL, Microsoft MSFT and Johnson & Johnson JNJ are among the top holdings in these ETFs.

Inflation is now running at its highest levels in four decades and is one of the biggest concerns for investors. Chris recommends natural resources such as oil & gas, precious metals, and timber to protect against inflation and diversify equity focused portfolios.

In fact, natural resources provided the best annual returns of the major asset classes during the past four Fed rate hiking episodes. Infrastructure, including areas like cellular towers, broadband networks, and healthcare facilities, could also provide some protection against inflation.

The FlexShares Morningstar Global Upstream Natural Resources ETF GUNR has seen a lot of investor interest lately as it is up about 14% year-to-date. The FlexShares STOXX Global Broad Infrastructure ETF NFRA is also worth a look.

Tune in to the podcast to learn more.

Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.


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Apple Inc. (AAPL) : Free Stock Analysis Report
 
Microsoft Corporation (MSFT) : Free Stock Analysis Report
 
Johnson & Johnson (JNJ) : Free Stock Analysis Report
 
FlexShares Quality Dividend ETF (QDF): ETF Research Reports
 
FlexShares STOXX Global Broad Infrastructure ETF (NFRA): ETF Research Reports
 
FlexShares Morningstar Global Upstream Natural Resources ETF (GUNR): ETF Research Reports
 
FlexShares US Quality Large Cap ETF (QLC): ETF Research Reports
 
FlexShares US Quality Low Volatility ETF (QLV): ETF Research Reports
 
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Zacks Investment Research