Rohan Reddy, Director of Research, Matthew Dunn and Eric Zheng, Research Analysts at Global X ETFs discuss income strategies for an inflationary environment.
In the face of continued inflation, stock markets have struggled thus far in 2022 and traditional bond yields remain at historic lows. Today’s advisors look to bolster client portfolios against inflation risk while seeking new income solutions.
The Global X Variable Rate Preferred ETF (PFFV) contains a portfolio of variable rate preferred stocks, which provide income as well as the opportunity for capital appreciation. In rising rate environments, variable rate preferreds reset on a quarterly basis, which offers duration risk protection. MLPs are another source of attractive yield in today’s environment, offering tax benefits and enhanced yield, with relatively low volatility compared to oil prices. Global X’s MLP lineup includes MLP ETF (MLPA) and MLP Energy Infrastructure ETF (MLPX).
Global X is a leading provider of thematic and disruptive ETFs. The global investment manager’s suite of products includes 94 ETFs, with $94B AUM collectively and spans income, thematic growth, commodities, and international strategies.
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Inflation has reached levels not seen in 40 years, pressuring the Fed to increase interest rates and reduce its balance sheet. As we transition into a higher interest rate environment, derivative strategies and equity income solutions are well-suited options for investors to generate yield in the current environment. Please join Global X Director of Research, Rohan Reddy, and Global X Research Analysts, Matthew Dunn, and Eric Zheng, to discuss the market outlook and insights into how investors can position their portfolios with options based strategies like covered calls, energy related assets, like master limited partnerships (MLPs), and lower duration fixed income instruments like variable rate preferreds, all of which can help generate income in rising rate environment.