Best Mutual Funds & ETFs to Hedge Against Inflation [Vanguard, DFA & Schwab Index Funds]

by | Aug 10, 2022 | Inflation Hedge | 1 comment

Best Mutual Funds & ETFs to Hedge Against Inflation [Vanguard, DFA & Schwab Index Funds]




This video introduces six highly rated mutual funds and ETFs that you should consider if you want to protect your investment portfolio against inflation. These mutual funds and ETFs will give your portfolio exposure to certain asset classes that have been historically resilient against inflation and are also endorsed by the top investment research firm Morningstar.

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✅ About this video ✅

The mutual funds and ETFs shown on this slide will provide exposure to TIPS. If you are not familiar with what TIPS are, you can watch my previous video on this topic. These funds are all Gold-rated according to Morningstar’s website. The first column in this table is the funds Sharpe which is a measure of risk-adjusted return. It describes how much excess return you receive for the volatility of holding a riskier asset. The higher the sharpe ratio, the higher the amount of returns you receive for taking on the risk associated with investing the fund. The second column shows how much money you would have had today, if you had invested $10,000 in the fund 10 years ago. The third column is the management fee which shows you how much money each investment firm is going to charge you on an annual basis for managing the fund.

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The two Vanguard funds have higher Sharpe Ratio which means that they have less volatility. However, these two funds have had lower gains over the past 10 years as you can see in the second column. The management fees are very low for all of them compared to the industry average which is roughly 0.4%. Note that there is no cleanser winner here because higher gains usually come with higher volatility. At the end of day, it is up to you to decide which one is the right choice for you.

The mutual funds and ETFs shown on this slide will provide exposure to real estate. They are all also Gold-rated according to Morningstar’s website. These funds have lower Sharpe Ratio because historically they have offered higher returns, but they are also more volatile. The second column again shows the amount of money you would have had if you had invested $10,000 in these funds. All three of them have performed more or less the same and also have relatively small management fees compared to the industry average. Therefore, any of them is a good hedge to consider against inflation.

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Hi everyone! My name is Hamed Dadgour and I am excited to see that you are interested in my content.

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✅ Timestamps ✅

0:30 Intro
1:41 Part 1: Protection against inflation
2:55 Part 2: Selection criteria
4:49 Part 3: Selected mutual funds & ETFs…(read more)


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1 Comment

  1. Jim Dou

    Thanks for sharing this content. I am curious why you didn't include EAPCX as a gold star rated mutual fund by Morningstar relating to commodities. I am find this fund very interesting both from performance and risk.

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