Check out this Fox Business Article Richard Strasburger was Quoted In

Are ETFs a hedge for Inflation?

Latest consumer spending data shows a 6.4% spike in January on an annual basis

Exchange-traded funds (ETFs) can be a good hedge against inflation.

Such funds, which can include a basket of thousands of individual securities, offer all the liquidity of a stock and the diversity of a mutual fund while offering protection against inflationary pressures and a weakened U.S. dollar.

ETFs operate much like mutual funds but are built to track a specific or basket of financial assets. While ETFs have lower costs, better intraday liquidity and are considered more tax efficient, many are also more passive in nature than mutual funds, which have an actively managed fund structure.

Richard Strasburger, a financial advisor for Raymond James Financial Services, told FOX Business, ETFs focused on less-sensitive sectors of the economy, such as consumer staples, healthcare, and commodities like oil and gold, are an investor’s best bet during inflation. 

"They may perceive the earnings of the underlying fund constituents as more resilient in the face of economic headwinds," he added. "Some investors may even buy a short-term U.S. Treasuries ETF as a hedge."

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Investors should consider the investment objectives, risks, charges and expenses of an exchange traded fund carefully before investing. The prospectus contains this and other information and should be read carefully before investing. The prospectus is available from your investment professional.