Twelve Things You Need to Know About ETFs

By Ben Steverman - 2012-02-27T22:16:37Z

Illustration by Dennis Pacheco

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Are there ETFs to help protect my portfolio against inflation?

Many popular ETFs are designed to offer inflation protection. "None of them are perfect," Nadig says. Funds that hold Treasury Inflation-Protected Securities, such as the SPDR Barclays Capital TIPS ETF (IPE), match the official inflation rate but offer almost no returns otherwise. Non-U.S. TIPS are available through the SPDR DB International Government Inflation-Protected Bond ETF (WIP).

PNC's Jennings says: "The best hedge against inflation is equities." Also useful, he adds, are broad commodities indexes and real estate funds. ETFs that hold real estate investment trusts often pay out more in dividends than actively managed REIT funds.

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