FCPI ETF

The Fidelity Stocks for Inflation ETF and Fidelity Dividend ETF For Rising Rates funds are designed for an inflationary environment. The former, FCPI, focuses on fundamentals and momentum, while the latter, FDRR, seeks dividends and correlation with treasury yields. FCPI has outperformed FDRR since its inception, but both funds have lagged the S&P 500 index.

The debate around economic resilience and the direction of inflation and interest rates continues into summer. Fidelity offers an array of ETFs to reflect your portfolio's position on the path of interest rates looking ahead.

Jamie Dimon, CEO of JPMorgan Chase, recently spoke at the Economic Club of New York and voiced worries about the U.S. economy potentially facing challenges reminiscent of the 1970s. He mentioned the possibility of stagflation, a condition of low growth and high inflation, which could complicate the current inflation risks in the U.S. economy. This information was reported in an article on Yahoo Finance.

U.S. inflation remained sticky this year, which means that the Fed may go slow in cutting interest rates this year. Investors may play these ETF strategies to ride out the current edgy investing scenario.

The U.S. economy has been experiencing sticky inflation, higher rates and slower growth, meaning a stagflationary scenario.

With U.S. inflation appearing stubborn, this inflation-centric ETFs may come to investors' rescue.

An improving U.S. economy can push up inflation, going into 2024.

Fidelity Stocks for Inflation is an ETF designed to excel when inflation is a dominant factor, and it has proven its effectiveness in this regard. FCPI is not a pure play on inflation but rather an S&P 500 fund built for inflation, making it suitable for buy-and-hold investors who anticipate a trend towards higher inflation or a boom in commodity sectors and energy. In the short term, FCPI may struggle relative to the S&P 500 Index as inflation peaked in mid-2022 and commodity prices have come down, but investors looking to accumulate FCPI at a relative discount may find their opportunity in the coming months.