First Trust has launched the Bloomberg Inflation Sensitive Equity ETF that focuses on financially robust companies within the energy, industrials, materials, and real estate sectors to help investors navigate the challenges posed by high inflation. The ETF selects its constituents from an initial universe comprising the 50 largest US-listed companies within each of the four sectors, and its methodology selects the 50 companies with the highest free-cash-flow yield over the previous 12 months.
First Trust launches ETF targeting high cash flow stocks during inflationary cycles
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Investors interested in this strategy may also consider the Horizon Kinetics Inflation Beneficiaries ETF, which invests in exploration and production companies, mining companies, transportation companies, infrastructure, and real estate companies.