U.S. Inflation At A 40-Year High: 4 Sector ETFs To Win

Image: Bigstock

The annual inflation rate in the United States accelerated to 7.5% in January of 2022, marking a new high since June of 1982, well above market forecasts of 7.3%. Energy led to the jump while labor shortages and supply disruptions also caused a slump. Notably, inflation was 0.6% in January sequentially.

Inflation was hot for shelter, food, new vehicles, used cars and trucks, apparel, and medical care services, per TradingEconomics. Vanguard Real Estate Index Fund ETF Shares (VNQ - Free Report), AdvisorShares Restaurant ETF (EATZ - Free Report), SPDR S&P Retail ETF (XRT), and iShares U.S. Healthcare Providers ETF (IHF - Free Report) are some of the sector ETFs that stand to gain from the latest inflation report.

Real Estate - Vanguard Real Estate ETF (VNQ - Free Report)

The index for shelter increased 0.3% in January as the rent index jumped 0.5% and the owners’ equivalent rent index rose 0.4%. The Vanguard Real Estate ETF seeks to track the performance of the MSCI US Investable Market Real Estate 25/50 Index.

Apparel - SPDR S&P Retail ETF (XRT)

The price index for apparel increased 1.1% in January after logging the same increase in December.  Prices increased 5.3% year-over-year.

The underlying S&P Retail Select Industry Index represents the retail sub-industry portion of the S&P TMI. The S&P TMI tracks all the U.S. common stocks listed on the NYSE, AMEX, NASDAQ National Market, and NASDAQ Small Cap exchanges. The Retail Index is a modified equal weight index.

Restaurants - AdvisorShares Restaurant ETF (EATZ - Free Report)

The food away from home index rose 0.7% sequentially in January after rising 0.6% in December. The index for full-service meals jumped 0.7%. The index for food away from home rose 6.4% year-over-year, the largest one-month increase since January 1982. This points to the fact that restaurants are charging higher.

The AdvisorShares Restaurant ETF is an actively managed exchange-traded fund that seeks to achieve its investment objective by investing at least 80% of its net assets in securities of companies that derive at least 50% of their net revenue from the restaurant business.

Medical Care Services - iShares U.S. Healthcare Providers ETF (IHF - Free Report)

The medical care index rose 0.7% sequentially in January. The index for hospital services increased 0.5% and the index for prescription drugs rose 1.3%, while the index for physicians’ services declined 0.1%.

The underlying Dow Jones U.S. Select HealthCare Providers Index of the fund measures the performance of health care providers’ sub-sector of the U.S. equity market. It includes health maintenance organizations, hospitals, clinics, dentists, opticians, nursing homes, plus rehabilitation & retirement centers.

Disclaimer: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
Or Sign in with