ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Core Strategies Channel
  2. Hedging With Diversification as Inflationary Fears Set
Core Strategies Channel
Share

Hedging With Diversification as Inflationary Fears Set

Karrie GordonOct 25, 2021
2021-10-25

The Fed has its meeting regarding beginning pull-backs on the $120 billion monthly bond purchase program at the beginning of November, a choice that increasingly more investors are concerned about given indicators of broad inflationary pressures in recent months.

Government officials have indicated that they expect supply chain issues, which have caused price increases across broad sectors, to resolve and that inflation-driven prices will fall once the bottlenecks are gone, reports the Wall Street Journal.

This perspective has begun to shift as supply chain woes have only continued. Federal Chairman Jerome Powell expressed frustration last month at a congressional testimony, saying, “supply-side constraints have actually gotten worse in some cases…and now we’re getting upward pressure on energy.” Powell concluded, “The risks are clearly now to longer and more-persistent bottlenecks, and thus to higher inflation.”

Because of the concerns of increased inflation over a longer duration, the Fed is looking to taper faster than January, which was the original goal, and reducing over the course of a year; the current plan is to have phased the stimulus program out by June, reducing bond purchases by $15 billion each month.

A report from the Labor Department last month indicated that price pressures are broadening and core prices that the Fed uses as a gauge that exclude volatile food and energy categories were up 3.6% in August over last year. Meanwhile the prices of goods, such as used cars, that were leveling out over the summer months are once again climbing.

American Century Investments Offers Broad Equity Investment

One way that investors are looking to hedge against inflationary fears is to diversify their exposures; the Avantis U.S. Equity ETF (AVUS A) offers diversification in spades. The fund is actively managed and invests in U.S. companies across all market caps and sectors, offering exposure to a variety of industries.


Content continues below advertisement

Avantis US Equity ETF

AVUS is benchmarked to the Russell 3000 Index. It works by overweighting smaller market cap companies, high profitability companies, and value companies, and it underweights or excludes large-cap companies that offer lower returns.

The portfolio managers consider the financials and market data of companies when investing, as well as industry classification, the performance of a security compared to its peers, and the stock’s liquidity, float, and tax considerations.

As of the end of September, sector allocations were information technology at 22%, financials at 17%, consumer discretionary at 15%, healthcare at 12%, and industrials at 11%, with smaller allocations to other sectors.

AVUS has an expense ratio of 0.15%.

For more news, information, and strategy, visit the Core Strategies Channel.

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X