TIPS ETF (SCHP), Vanguard Short-Term Inflation-Protected Securities ETF (VTIP), and the SPDR Gold Trust (GLD) accounted for nearly half of inflows and suggested hedging against inflation
had become an investor concern.
• Hedging Against Inflation
- Seventy-six percent of high net worth investors are concerned about inflation as it impacts their portfolios.
The above results indicate the differing degree of inflation-hedging by different countries, particularly the degree of hedging against inflation
is stronger in advanced markets compared to emerging markets.
They value gold for its role in preserving wealth and hedging against inflation
over the long term," the World Gold Council said.
ANITA ROBERTSON, financial consultant, Private Client Group, Merrill Lynch, Los Angeles, 800-456-8790, shares her thoughts on structuring a portfolio for clients interested in hedging against inflation
. "I develop strategies to achieve individual client goals.
Inflation causes people to invest scarce resources in activities that have the sole purpose of hedging against inflation
. Inflation interacts with the tax structure to stifle incentives to invest.
The strong demand for the 30-year TIPS reopening could suggest some investor interest in hedging against inflation
risks, though it was a small niche offering.