Lyxor case study

Inflation-linked ETFs: How to navigate rising inflation

Published by : Lyxor

Central banks have been spending freely in support of their economies for years, largely without any of the expected effects on inflation rates. Now though, their attentions could turn elsewhere - like increasing infrastructure spending - and that, allied with things like higher energy prices could drive inflation higher. When, and where, it might rise is hard to predict, but it's better to be prepared.

Recent flows into inflation-linked ETFs point both to a new inflation regime and a growing realisation that active managers aren't delivering what their investors need. On average, only 11% of active funds outperformed the FTSE MTS Eurozone Inflation-Linked bond index in 2015. Not one has outperformed the index over 10 years.

From traditional products with charges as low as 0.07%2, to more innovative solutions that provide exposure to inflation expectations, Lyxor ETF offers a number of inflation-related tools designed to navigate rising prices.

Published:28 March 2017

Business Area: ETFs

Type: Portable Document Format (.pdf)


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