FCPI: This Inflation ETF Isn't As One-Dimensional As You Might Think
Source: SeekingAlpha
2025-04-14 14:32:18 ET
Summary
- Inflation rates have steadily declined since peaking at 9.1% in June 2022, but the Fidelity Stocks For Inflation ETF has still managed to deliver solid returns.
- That's because FCPI only tilts towards inflation-friendly sectors like Energy and Materials, while tilting away from others like Consumer Discretionary and Technology.
- This setup promotes diversification away from mega-cap growth stocks and results in FCPI trading at only 15.07x forward earnings, a 24% discount over the iShares Russell 1000 ETF.
- FCPI's Index also has dedicated quality, value, and momentum screens, and since its margins are superior to IWB and other inflation ETFs, it's a solid choice for the long run.
Investment Thesis
When you name a fund the Fidelity Stocks for Inflation ETF ( FCPI ), you pretty much box yourself into a corner, at least from the perspective of most retail investors. With inflation registering at 2.4% last month compared to a 9.1% peak in June 2022, there doesn't seem to be the need for an ETF like FCPI. Indeed, FCPI's fund flows declined by $60.9 million over the last three years....
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FCPI: This Inflation ETF Isn't As One-Dimensional As You Might Think
Avantis Inflation Focused Equity ETF
NASDAQ: AVIE
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