TIPX - RLY: More Of A Cyclical Play Than A Portfolio Diversifier

2024-03-14 15:54:18 ET

Summary

• RLY is a small fund with exposure to commodities and infrastructure companies, plus other inflation-protected securities.
• The ETF lacks the diversification benefits of RPAR and is more focused on assets that perform well during periods of inflation.
• RLY could be used as a complement to RPAR in a portfolio, but in smaller amounts, for further protection against rising inflation.

One of the readers of my recent Risk Parity ETF ( RPAR ) article asked a question in the comments section that triggered my curiosity: " How would you compare RPAR to the SPDR SSGA Multi-Asset Real Return ETF ( RLY ) ?"...

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