AVIE ETF

Inflation and interest rates have been the main focus for markets in the past year. With the Fed likely to keep rates steady this week, attention has shifted to inflation as the primary concern for markets.

Positivism heading into 2023 centered on the Federal Reserve keeping inflation in check and eventually decelerating its pace of rate hikes. However, if inflation proves to be stubborn, investors can counter with an inflation-focused exchanged traded fund (ETF).

Heading into 2023, it was widely anticipated that inflation would be stubborn, and while the expectation is that the Federal Reserve will eventually pause rate hikes, persistent inflation creates opportunities for hedging strategies implemented by active exchange traded funds (ETFs).