A one-of-a-kind monthly ETF model designed to protect your clients from rising inflation by utilizing low-correlated asset classes ranging from Precious Metals to Treasury Inflation-Protected Securities (TIPS).
iQ ETF Inflation Hedge Model
PROFIT FROM RISING INFLATION…
The iQ ETF Inflation Hedge Model applies quantitative monthly technical indicators to ten asset Exchange-Traded Funds (ETFs) anticipated to provide a hedge against rising inflation.
HOW DOES THE MODEL WORK?
Each asset ETF represents a 0% - 10% allocation of the total model and is represented by four technical strategies that may dictate a long or cash position in any given month. Each of the four technical strategies per asset ETF represents ¼ of each asset’s allocation for a total of 2.50% of the total Model allocation.
The table below summarizes the asset ETF tickers and the potential allocation to each:
Why do we utilize four strategies per asset class?
Most of the asset classes utilized by the Model are volatile…
Rather than take an “all or none” approach, iQUANT seeks to spread the risk of volatility across multiple strategies for the same asset class.
Why invest in inflation hedges?
Investing in inflation hedges can help protect an investor's portfolio from the negative effects of inflation, which is the rate at which the general level of prices for goods and services is rising. Here are some reasons why investors might choose to invest in inflation hedges:
1. Protect Purchasing Power: Inflation can erode the purchasing power of an investor's money over time, as the prices of goods and services increase. Investing in inflation hedges can help protect an investor's purchasing power by providing returns that keep pace with inflation.
2. Diversification: Investing in inflation hedges can also provide diversification benefits by adding exposure to assets that may perform well in inflationary environments. This can help reduce portfolio risk and potentially enhance returns by tapping into the growth potential of different asset classes.
3. Potential for Higher Returns: Inflation hedges may offer potential for higher returns during periods of high inflation, as their values increase in response to rising prices. For example, assets such as real estate, commodities, and inflation-indexed bonds may perform well in inflationary environments.
4. Hedge Against Uncertainty: Investing in inflation hedges can also be a way to hedge against uncertainty in the economy and the financial markets. Inflation can be unpredictable, and investing in assets that have historically performed well in inflationary environments can provide a measure of protection against the potential negative effects of inflation.
Examples of inflation hedges include real estate, commodities (such as gold or oil), inflation-indexed bonds, and large value stocks. However, it's important to note that investing in inflation hedges can also come with risks, such as market volatility, liquidity risks, and potential investment losses.
IMPORTANT! The Grayscale Bitcoin Trust (GBTC) was not available prior to 2015.