ECONOMIC SILUET: Inflation-fighting ETFs

Jumat, 14 Januari 2022

Inflation-fighting ETFs

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FRI, JAN 14, 2022

YOUR WEEKLY UPDATE ON TOP ETF TRENDS

A NOTE FROM BOB

Inflation-fighting ETFs are all the rage, and we have the show for you. Join us on ETF Edge this Wednesday at 1 PM when our guest will be Mr. Wonderful himself, Kevin O'Leary, who runs the successful O'shares ETF franchise. He'll be joined by Scott Ladner, CIO of Horizon Investments, which has $8 billion in assets under management, a little over half of which are invested in ETFs. Also on board is Alexi Panagiotakopoulos, Partner & Chief Investment Officer in Fundamental Income, who runs the NETLease Corporate Real Estate ETF (NETL), a very interesting real estate investment vehicle that throws off a 4% yield. We'll talk converts, preferreds, high yield, bank loans, and other ways to get more yield from your investments!

It's earnings season, and ETF giant Blackrock has already reported. You know about the huge influx of money that came into ETFs last year, and Blackrock, which runs iShares, the largest ETF fund family, was a big beneficiary. Investors put a record net $104 billion into ETFs in the three months ended Dec. 31, much of it plain-vanilla indexed ETFs, but even active management saw significant inflows.

Despite a 50% decline in price, Cathie Wood's flagship ARK Innovation ETF (ARKK) has seen only modest outflows, but that may be changing. ARKK has seen a slow but steady decline in its shares outstanding (an indication of inflows and outflows), from about 200 million in April 2021 to about 170 million, a relatively modest 15% decline. But investors pulled $352 million from ARKK in a single day last Wednesday, according to data compiled by Bloomberg. That was the biggest outflow since March.

Just what we need: a Supply Chain Logistics ETF. Well you knew that was coming. It's the ProShares Supply Chain Logistics ETF.

The fee wars are not over. Vanguard is relentless in its efforts to cut costs, and fees. Chief executive Tim Buckley said Vanguard would cut $1 billion from its investment fund fees by 2025. It already reduced charges by $140 million in 2021.

For more analysis and actionable insights, catch me live this Wednesday at 1 PM ET on ETF Edge.