First Trust Advisors Launches “Inflation Sensitive” US Equity ETF

First Trust Advisors launched a new exchange traded fund (ETF) – the First Trust Bloomberg Inflation Sensitive Equity ETF – targeting stocks of high cash flow companies from sectors that have historically performed well during inflationary cycles.

The First Trust Bloomberg Inflation Sensitive Equity ETF, which tracks a Bloomberg index that draws its holdings from the energy, industrials, materials and real estate sectors, has been listed on NYSE Arca with an expense ratio of 0.60%.

“We believe that high inflation is one of the most important challenges that investors are facing in 2023,” said Ryan Issakainen, Senior Vice President and ETF Strategist at First Trust. “High quality stocks from sectors that have historically benefitted from rising prices may help investors navigate this environment.”

At least three inflation-focused equity ETFs have launched in the past few years, including the largest actively managed $1.2 billion Horizon Kinetics Inflation Beneficiaries ETF; the passively managed $188.4 million Fidelity Stocks for Inflation ETF; and the $25 million Avantis Inflation Focused Equity ETF.