Menu
News / Media

Inflation Is Looming. A Pair of New ETFs May Offer Protection

The Quadratic Interest Rate Volatility and Inflation Hedge ETF (IVOL), launched in May 2019, uses Treasury inflation-protected securities, or TIPS, and interest-rate derivatives to hedge against inflation and fixed-income volatility. 

“While many investors aim to hedge inflation with commodities, stocks, or real assets, most look first at TIPS. The main problem with those inflation-indexed securities is their long duration, which means they are especially prone to lower prices when their yields rise”, says Nancy Davis, who heads IVOL and founded Quadratic Capital in 2013 after stints at Goldman Sachs and AllianceBernstein. “…IVOL adds fixed-income options to counter that duration risk, specifically ones based on the Treasury yield curve (in this case, the difference between the two- and 10-year notes).”

Read more


For IVOL standard performance and top 10 holdings please click here. Past performance is no guarantee of future results. Diversification does not protect against market risk.


The above link will take you off the KraneShares website. Krane Funds Advisors, LLC (KFA) has included links to unaffiliated third parties for informational purposes only. The links and the views of the third parties do not necessarily reflect the views of KFA, its management, employees, officers, and affiliated entities. All opinions, evaluations, descriptions and statements do not purport to be complete and are subject to change. KFA makes no representation as to the adequacy of information and should not be construed as an endorsement by KFA, its affiliated entities, management, officers, employees and agents.