The combination of cooling prices and a less aggressive Fed could put pressure on a group of ETFs designed to counter inflation or rising rates — or both — that has attracted significant investor interest this year.
Rising rate ETFs For example, the Simplify Interest Rate Hedge ETF (PFIX) , which has more than $350 million in assets under management, fell 2.8% on Tuesday.
The FolioBeyond Rising Rates ETF (RISR) , which has raked in more than $80 million this year, was off 1.3%.
Bet on falling rates, inflation?
Treasury funds like the iShares 20+ Year Treasury Bond ETF (TLT) and Vanguard Intermediate Term Treasury ETF (VTIP) have expense ratios of 0.15% and 0.04%, respectively, and will rise in value as yields fall.