While most investors are dreading the effects of inflation, Amplify has launched an ETF designed to take advantage of inflationary trends, the company announced.
The Amplify Inflation Fighter ETF (NYSE: IWIN) is an actively managed ETF that invests in asset classes that seek to benefit, either directly or indirectly, from inflation, according to Amplify, a financial services firm based in Chicago with $4.4 billion in assets in a suite of ETFs. The Inflation Fighter ETF includes a mix of stocks and other securities, as well as futures linked to commodities, including land, agriculture, energy, precious metals and Bitcoin.
“We actively try to find investments that do well in an inflationary environment to create returns,” Michael Venuto, portfolio manager of the ETF and chief investment officer at Toroso Investments, subadvisors to the ETF, said in an interview. “Approximately 60% of the ETF is composed of land investments, including farmland, timberland and home construction. The remainder includes other commodities, such as copper, corn, oil, gold and Bitcoin.”
The Inflation Fighter ETF is meant to be an alternative option for a portfolio and should make up 5% or less of the investors’ total portfolio, Venuto said. “I’ve wanted to do an ETF based on land and commodities for some time now and the environment was perfect to do it now,” he said.
“Investors are experiencing the negative impact inflation can have on their wallets and portfolios,” Christian Magoon, CEO of Amplify ETFs, said in a statement. “We believe IWIN provides investors with a dynamic, convenient and diverse approach to combat inflation’s impact on broad-based portfolios.”
The Inflation Fighter ETF is designed to provide investors with long-term capital appreciation in inflation-adjusted terms. The fund invests up to half of its net assets in commodity futures or ETFs, while the rest of the portfolio will be in stocks and other securities, Amplify said. By being actively managed, Toroso can identify and act on opportunities and risks across inflation-friendly asset classes, Amplify said.