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As Official Inflation Data Fades, These ETFs Can Help 

For years now, inflation has been a stubborn challenge for the consumer and for the stock market. Ever since the pandemic, inflationary pressures have defined both the economic and political narratives challenging investors. The Fed’s decision to cut rates, combined with reduced availability of official inflation data, has heightened inflation risk for investors. These ETFs can help prepare for inflation uncertainty.See more: T. Rowe Price Leaders Talk TTEQ OpenAI Pickup What kind of ETFs can help portfolios even as inflation data appears finicky and uncertain? Active ETFs offer the flexibility and fundamental research focus that can overcome macro concerns in many cases.  For example, active ETFs lean heavily on fundamental metrics like cash flow and profitability to help identify potential investments. In scenarios when the broader, macro environment is hard to predict, leaning into firms already displaying resilience can reward investors. By the same token, those companies may also be better positioned to outperform if conditions brighten more than expected.  Active ETFs also adapt and invest with greater flexibility than their passive counterparts. Where passive funds have to stick to their indexes with basically no deviation, active ETFs can adjust. While most active ETFs worth their salt don’t shift investments each and every day with every change in the wind, that flexibility can make a difference. There are even active ETFs that focus specifically on areas that can benefit from rising inflation. Input goods often see price increases in an inflationary environment. Rather than look to a simple index solution to inflation-sensitive goods, a targeted, fundamental research-driven active ETF can get more out of that trend. A fund like the T. Rowe Prices Natural Resources ETF (TURF ) could be worth a look therein. TURF charges a 44 basis point fee to actively invest in global companies upstream of key supply chains.  In the months ahead, the lack of official inflation data may throw a wrench in many market watchers’ plans. Active ETFs can help meet the moment with flexibility, fundamental research, and outperformance — even if official inflation data ends up positive. For those looking to a portfolio refresh, it may be worth considering active.  For more news, information, and analysis, visit our Active ETF Content Hub.

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