Inflation fears add to their appeal

Article Excerpt

While inflation pressures appear to be rising, consumer prices have seen only modest increases so far. Still, factors leading to a sharper rise may be building. They include today’s very low interest rates and the massive spending and borrowing by governments around the world to inject money into the economy. The U.S. Federal Reserve’s intention to allow inflation to rise above its 2% target rate could also spur prices. Here are two ETFs that hold stocks with the potential to do well in good times—and perhaps even better under higher inflation. On page 69 we offer more information about inflation in Canada and the U.S. CI CANADIAN REIT ETF $18.97 (Toronto symbol RIT; TSINetwork ETF Rating: Aggressive; Market cap: $635.7 million) invests mainly in Canadian real estate investment trusts (REITs), but also holds shares of other real estate firms. The ETF’s maint allocations are Residential (31% of assets), Industrial (21%), Retail (19%), and Healthcare (6.0%) real estate. It’s currently 90% invested in Canadian…

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