Another Inflation Fighting ETF On Tap

First Trust, the firm behind the recently-launched Cloud Computing Index Fund (SKYY) has filed details on an ETF focused on another popular theme: inflation. A recent SEC filing detailed the First Trust Inflation Managed Fund, a product that would maintain a primary investment objective of “long-term capital appreciation” and secondary objective of current income. The proposed ETF would be actively managed, and according to the filing would invest in “common stocks of companies in the energy and materials sectors and in ETFs and closed-end funds that hold commodities, such as gold and silver, inflation-indexed government bonds and floating rate securities.” The filing also mentioned that the fund could use derivative instruments to hedge against interest rate increases. That flexibility could be appealing to investors concerned about the adverse impact of rising rates on inflation-protected bonds, an asset class that many have embraced as a primary defense against inflation and one [...] Click here to read the original article on ETFdb.com. Related Posts: Inflation ETF Special: 25 ETF Ideas To Fight Rising Prices WisdomTree Debuts Inflation-Focused ETF: Real Return Fund (RRF) WisdomTree ETF Takes On Inflation Five ETFs To Look Forward To ETF Insider: No Stopping Gold