The First Trust Bloomberg Inflation Sensitive Equity ETF (FTIF) invests primarily in U.S. exchange-listed companies within sectors that are expected to benefit from rising prices. The underlying index selects companies from the energy, industrials, materials, and real estate sectors that have historically performed well during inflationary cycles and have high free-cash-flow yield. The fund also drops highly leveraged companies within each sector that tend to underperform during down markets.
Compared to its competitors, such as the Amplify Inflation Fighter ETF (IWIN) and the AXS Astoria Inflation Sensitive ETF (PPI), FTIF focuses on safer sectors and charges a lower expense ratio of 60 bps. Additionally, the fund only holds 50 stocks, with no stock making up more than 2.59% of the fund. The top three holdings are Reliance Steel & Aluminum Co., Nucor Corporation, and Cleveland-Cliffs Inc.
ETF Newz Says:
Investors looking for an ETF that provides exposure to inflation-protected sectors and companies may find FTIF to be a suitable option.
