4 ETFs to Outrun Inflation as Real Asset Demand Reaches Fever Pitch

With rampant global inflation, real assets are the apple of investors’ eyes. Tangible asset exposure can come in the form of exchange traded funds (ETFs) with product offerings from FlexShares.

For an all-inclusive approach, investors can opt for the FlexShares Real Assets Allocation Index Fund (ASET). ASET can give investors exposure to it all through one position, and volatility is minimized due to ASET holding companies that represent real asset exposure instead of the actual tangible assets themselves.

ASET seeks investment results that correspond generally to the price and yield performance of the Northern Trust Real Assets Allocation Index. The underlying index measures the performance of an optimized allocation to the underlying funds that is intended to provide exposure to certain real assets and minimize the overall volatility of an investment in the underlying funds.

3 Sector-Specific Options

With real estate prices rocketing higher, ETF investors can look at the FlexShares Global Quality Real Estate Index Fund (GQRE). GQRE seeks investment results that generally correspond to the price and yield performance (before fees and expenses) of the Northern Trust Global Quality Real Estate Index, which is designed to reflect the performance of a selection of companies that, in aggregate, possess greater exposure to quality, value, and momentum factors relative to the Northern Trust Global Real Estate Index.

Another fund focuses on infrastructure, which is getting a lot of attention this year thanks to U.S. President Joe Biden’s trillion dollar infrastructure bill late last year. As such, there’s the FlexShares STOXX Global Broad Infrastructure Index Fund (NFRA).

NFRA seeks investment results that generally correspond to the price and yield performance (before fees and expenses) of the STOXX® Global Broad Infrastructure Index. The index reflects the performance of a selection of companies that, in aggregate, offer broad exposure to publicly traded developed and emerging market infrastructure companies, including U.S. companies, as defined by STOXX Ltd. pursuant to its index methodology.

Lastly, with rising energy costs, investors can outpace inflation with the FlexShares Morningstar® Global Upstream Natural Resources Index Fund (GUNR). GUNR seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Morningstar® Global Upstream Natural Resources IndexSM.

The index reflects the performance of a selection of equity securities that are traded in or are issued by companies domiciled in global developed or emerging markets, as determined by the index provider pursuant to its index methodology.

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