Profit From Higher Inflation With RINF

Summary

  • Inflation remains excessively elevated.
  • RINF is an effective inflation hedge ETF and could outperform if inflation remains elevated in the following months.
  • An overview of the fund follows.
  • This idea was discussed in more depth with members of my private investing community, CEF/ETF Income Laboratory. Learn More »

Inflation Concept

Ibrahim Akcengiz

The ProShares Inflation Expectations ETF (NYSEARCA:RINF) is an index ETF providing investors with a simple way to profit from increased long-term inflation and inflation expectations. It does so through a long position in long-term treasury inflation-protected securities, or TIPs, and

RINF

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On a more negative note, RINF's returns have stagnated since June, for the same reasons as above: inflation expectations have decreased, even as inflation itself increases. In my opinion, and assuming inflation remains elevated, returns should pick up steam in the coming months, as was the case earlier in the year.

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This article was written by

Juan de la Hoz profile picture
7.98K Followers
CEF/ETF income and arbitrage strategies, 8%+ portfolio yields

Juan has previously worked as a fixed income trader, financial analyst, operations analyst, and economics professor in Canada and Colombia. He has hands-on experience analyzing, trading, and negotiating fixed-income securities, including bonds, money markets, and interbank trade financing, across markets and currencies. He focuses on dividend, bond, and income funds, with a strong focus on ETFs, and enjoys researching strategies for income investors to increase their returns while lowering risk.

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I provide my work regularly to CEF/ETF Income Laboratory with articles that have an exclusivity period, this is noted in such articles. CEF/ETF Income Laboratory is a Marketplace Service provided by Stanford Chemist, right here on Seeking Alpha.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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