RINF: Better Than TIPs Funds

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Macrotips Trading
2.08K Followers

Summary

  • The RINF ETF gives investors a duration hedged exposure to 30Yr TIPS bonds.
  • The RINF ETF does not pay a distribution, as its exposures are synthetically created.
  • Investors should own RINF when inflation expectations are rising.

INFLATION word on calculator in idea for FED consider interest rate hike, world economics and inflation control, US dollar inflation

Khanchit Khirisutchalual

In my personal quest to find investments that would do well in the current inflationary environment, I came across the ProShares Inflation Expectations ETF (NYSEARCA:RINF).

I believe the RINF ETF is an excellent fund to own in

RINF ETF holdings

Figure 1 - RINF ETF holdings (proshares.com)

RINF ETF Longs

Figure 2 - RINF ETF long exposure (proshres.com)

RINF ETF Shorts

Figure 3 - RINF ETF short exposure (proshares.com)

RINF ETF returns

Figure 4 - RINF ETF returns (proshares.com)

RINF ETF Fees

Figure 5 - RINF ETF Fees (RINF ETF Prospectus)

RINF vs. 30Yr Breakevens

Figure 6 - RINF vs. 30Yr Breakevens (Author created with price chart from stockcharts.com and breakeven data from St. Louis Fed)

This article was written by

Macrotips Trading profile picture
2.08K Followers
I spent 5 years as a co-founder and hedge fund CIO / manager. Before that, I was a hedge fund analyst/portfolio manager at a leading Canadian alternative asset manager. I write articles as part of my own due diligence on the stocks that I find interesting, for one reason or another.Follow me on twitter for my thoughts on macro trends.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in RINF over 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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