Stagflation has been a popular term recently as the markets fears inflation growth, a decrease in employment, and a slowing in economic growth. With that Merk Investments has announced the launch of the Merk Stagflation ETF (STGF). STGF will closely replicate the Solactive Stagflation Index which follows companies expected to directly or indirectly grow and benefit from inflation. A quote from Merk Investments states, “The Merk Stagflation ETF (STGF) is designed to provide appreciation potential and inflation-sensitive income in an environment of stagflation like that of the 1970s — characterised by high inflation rates, a bull market in commodities, and rising real estate prices. The strategy holds a basket of exposures across three asset classes: inflation-protected bonds, commodities, and real estate.”
STGF is the first stagflation-themed ETF to hit the market and could be a good option for concerned investors.