To Fight Inflation in a Volatile Market, Track the U.S. Consumer

While inflation and energy market volatility persist, consumer confidence and purchasing power have weakened. But pockets of opportunity still exist, notably in utilities, asset-backed securities and even bonds.

In the next webcast, To Fight Inflation in a Volatile Market, Track the U.S. Consumer, James Jessup, income strategist at Virtus ETFs; John Bartlett, president, portfolio manager and research analyst at Reaves Asset Management; Zachary Szyndlar, Director, Portfolio Manager and Credit Analyst, Securitized Products at Newfleet Asset Management; and Andrew Szabo, Portfolio Manager, Agencies and Residential Mortgage-Backed Securities at Newfleet Asset Management, will discuss strategies designed to help advisers diversify their clients’ portfolios in times of heightened inflationary pressures.

For example, the wide Newfleet Multi-Sector Unconstrained Bond ETF (NYSEArca: NFLT) helps target the right sectors of the global bond market at the right time, implementing active sector rotation and disciplined risk management to achieve long-term excess returns. The unconstrained style of investing does not require a manager to adhere to a specific benchmark. Instead, unconstrained strategies allow a manager to focus on returns across many asset classes and sectors, and styles typically have a longer time horizon. Additionally, a portfolio manager may use derivatives and other alternative asset classes to hedge market exposure.

NFLT will analyze sector value assessment to determine underweights and overweights, as well as interest rate outlook and sector allocation targets. Next, the team will review the fundamentals and assess credit risks, business management, issue structure and technical conditions. Finally, managers will select high-conviction picks across 14 sectors, with no restrictions on speculative or non-US stocks.

The Virtus Newfleet ABS/MBS ETF (NYSE: VABS) can also complement a traditional bond portfolio. The ABS (car loans, equipment leasing, credit card receivables, student loans, etc.) and MBS (mortgage, residential and commercial, agency and non-agency loan pools) sectors offer a broader set of investment opportunities and essential diversification from traditional fixed income securities. With a focus on off-benchmark niches in the securitized credit markets, Newfleet’s securitized credit specialists use their signature relative value approach, exploiting inefficiencies by continuously evaluating market sectors and securities.

Moreover, the Virtus Reaves Utilities (UTES) ETF seeks to provide total return through a combination of capital appreciation and income. The fund invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in equity securities of utilities companies (“utilities companies”).

The Manager considers a business to be a “utilities business” if at least 50% of the assets or customers of the business are engaged in, or at least 50% of the revenues, gross revenues or profits of business come from the supply of products. , services or equipment for the production or distribution of electricity, gas or water. The fund is undiversified.

Financial advisors interested in learning more about inflation hedging strategies can register for the Tuesday, September 13 webcast here.

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