This ETF Is An Inflation Hedge

The inflation data released Tuesday should convince investors that inflation isn’t just transitory. The headline Consumer Price Index, measured year over year, was up 5.4% in June.

The core rate, which doesn’t include food or energy, was up 4.5%. This blew away the estimates of 3.8% and was the largest move higher since September 1991.

Fortunately, some ETFs can be used to hedge stock portfolios against this inflation risk. They can even be used to profit in inflationary environments. One of them is the Invesco DB Agriculture Fund DBA.

This fund invests in agricultural commodities like wheat and soybeans. If their prices move higher, so should DBA.