PPI - Inflation fighting ETFs jockey into position ahead of July's CPI print

Inflation fighting exchange traded funds will be in focus on Wednesday, when the financial community will receive a highly anticipated reading on consumer inflation. With the July CPI print set to be released, both equity-focused and bond-based TIPS funds could see additional volatility.

Four equity-based ETFs to keep an eye on are the SPDR SSGA Multi-Asset Real Return ETF ( NYSEARCA: RLY ), ProShares Inflation Expectations ETF ( RINF ), VanEck Inflation Allocation ETF ( RAAX ), and the AXS Astoria Inflation Sensitive ETF ( PPI ).

Additionally, funds tied to U.S. Treasury Inflation-Protected Securities, or "TIPS,” will be on the radar as the data comes out. These ETFs include the iShares TIPS Bond ETF ( NYSEARCA: TIP ), Schwab U.S. TIPS ETF ( NYSEARCA: SCHP ), Vanguard Short-Term Inflation-Protected Securities ETF ( NASDAQ: VTIP ), and the iShares 0-5 Year TIPS Bond ETF ( STIP ).

Tuesday's price action ahead of Wednesday's print: RLY +0.6% , RINF -0.3% , RAAX +1.1% , PPI +0.5% , TIP -0.2% , SCHP -0.2%, VTIP -0.1% , and STIP -0.1% .

Year-to-date price action: RLY +5% , RINF +2.6% , RAAX +0.3% , PPI -1.2% , TIP -9.9% , SCHP -9.5% , VTIP -2.9% , and STIP -4.6% .

CPI data is set to hit the market at 8:30 a.m. ET on Wednesday. Economists expect July consumer prices to show an 8.7% increase compared to last year. This pace of inflation would be lower than the previous month's 9.1% print. Moreover, July YoY core inflation is anticipated to be 6.1%, slightly higher than June’s 5.9% read.

In broader market news all three major market averages opened Tuesday's session in the red.

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