“Investors have been showing a great deal of interest in holding a variety of investments that keep pace with inflation and add portfolio diversification, and the investment industry is paying attention,” Arya added. “The Morningstar US Real Asset Index will allow investors to better benchmark their real return investments and gain a deeper understanding of the benefits of adding a broad spectrum of inflation-hedged assets to their portfolios.”
ETF investors may also take a look at the IQ Real Return ETF (NYSEArca: CPI) as a way to hedge against inflation down the road. The Real Return ETF generates a return above the rate of inflation, as represented by the Consumer Price Index. The fund’s largest holdings include the iShares Barclays Short Treasury Bond (NYSEArca: SHV) 42.6%, SPDR Barclays 1-3 Month Treasury Bill ETF (NYSEArca: BIL) 24.0% and SPDR S&P 500 (NYSEArca: SPY) 10.3%.
For more information on ETF indexing, visit our indexing category.
Max Chen contributed to this article.