How to use ETFs for inflation protection

ETFs

Jose Garcia-Zarate, senior ETF analyst at Morningstar, on why ETFs should be considered for a multi-asset solution.

Inflation is one of the most pernicious forces faced by investors. Commonly described as a stealth tax; inflation chips away investment returns. As such, one of the most basic rules of investment portfolio construction is that of making adequate provisions against it. UK investors have been made particularly aware of such need in the past few years as inflation has run well above the Bank of England’s (BoE) price stability target of 2.0%. Despite a gradual slide from the multi-decade highs of late 2011, UK inflation as measured by the consumer price index (CPI) still remains above tar...