PPI - ETFs to watch ahead of December's CPI print

As Wall Street prepares itself for December's consumer price index, due out before trading begins on Thursday, there are a handful of exchange traded funds that come into focus, especially investment vehicles specifically targeting inflation.

ProShares Inflation Expectations ETF ( RINF ) represents one of the highest-profile names in this area. RINF ended 2022 at + 6.8% , posting gains when the Dow ( DJI ), S&P 500 ( SP500 ), and Nasdaq Composite ( COMP.IND ) dropped significantly in a year that saw the annual CPI figure peak at 9.1%, its highest read in 40 years.

Another inflation-focused ETF comes from AXS Investments, called the AXS Astoria Inflation Sensitive ETF ( NYSEARCA: PPI ). The fund also outperformed the broader markets in 2022, finishing the year -0.9% . In the early going of 2023, PPI has moved up by 2.6% YTD.

"There is consensus that inflation is on a downward trajectory, but we defiantly don’t think we are out of the woods," Greg Bassuk, CEO of AXS Investments, told Seeking Alpha.

Bassuk added that he is looking for "consistency" in Thursday's CPI report, noting that broader dynamics will likely have headline and core numbers moving in concert with each other.

Two other inflation-fighting exchange traded funds that market participants may look towards include the SPDR SSGA Multi-Asset Real Return ETF ( RLY ), which closed higher in 2022 by +1.5% and the VanEck Inflation Allocation ETF ( RAAX ), which slid 0.9% on the year.

Regarding December’s inflation print, economists anticipate that CPI Y/Y will come down from 7.1% to 6.5%. At the same time core inflation Y/Y is forecasted to rise 5.7% on an annual basis, which would be lower than the previous 6% figure.

In broader financial news, Wall Street remains higher on Wednesday as the investment community awaits the highly anticipated December CPI report.

For further details see: