30.09.2014 - Inflation-Hedge ETFs Struggle as Commodity Prices Drop
Traditional inflation-hedging assets and related exchange traded funds are losing ground as the longest commodity decline in over two decades helped keep a lid on consumer prices. For instance, inflation hedging tools such as Treasury Inflation Protected securities have underperformed traditional government debt assets. The iShares TIPS Bond ETF, which has a 7.64 year duration, declined 1.3% over the past three months while the iShares 7-10 Year Treasury Bond ETF, which has a 7.64 year duration, gained 0.7%. Additionally, gold, another inflation-hedging tool, has also been under pressure, with the SPDR Gold Shares down 7.6% over the past three months...............................................Full Article: Source
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