Persistent high inflation combined with high unemployment and stagnant demand in a country’s economy is Stagflation and there is an ETF in the works to match a trend that is happening in the economy. The Merk Stagflation ETF will be passively managed and track an index of stagflation-sensitive asset classes. If approved by regulators, the fund would hold 55%-85% U.S. Treasury Inflation-Protected Securities and between 5%-15% real estate, gold and oil.
ETF Newz Says:
Sign of the times in the economy though we have heard lots of talk of inflation, we don't have unemployment concerns at this point. Higher inflation and lower profit margins will likely raise concerns about stagflation.