Not exact matches
You can even use ETFs to directly implement a
hedge,
such as using an inverse S&P 500 ETF to
hedge large - cap exposure, or commodity ETFs to
hedge against inflation.
Kevin Murphy says — David: Would a reverse ETF
such as the Proshares Ultrashort treasury funds be a good
hedge against inflation or a failure of the Government to finance it's obligations at current interest rates?
Historically, commodities
such as metals and agricultural products have been a good
hedge against inflation, though their prices can be volatile.
Commodities have historically provided investors with a
hedge against inflation, a way to capitalize on the growth of emerging economies around the world
as well
as returns that are uncorrelated to more traditional asset classes,
such as stocks and bonds.
But on the flip side, at least you can
hedge against this
inflation with assets you may own
such as your home and investments.
While I can understand the value in having
hedges against inflation, I'm at a bit of a loss over the value of having gold versus TIPS since gold has the possibility of losing value versus what I paid for while it while instruments
such as the TIPS don't have that problem.
Commodities have historically provided investors with a
hedge against inflation,
as well
as returns that are uncorrelated to more traditional asset classes,
such as stocks and bonds.
In fact institutional investors,
such as leading endowments and foundations, have long used investments in real assets
such as real estate, commodities, timber and energy
as both a
hedge against inflation and
as a core diversifier.»