Endless demand to protect portfolios from rising prices is fueling an indiscriminate boom in one corner of the $7.2t U.S. exchange-traded fund market. Every single ETF with the word “inflation” in either its name or description has posted inflows so far this year, according to data compiled by Bloomberg -- a rare degree of one-way conviction among the investing masses.
“Most people see inflation with their own eyes in their lives and don’t buy the transitory line from the Fed,” said Eric Balchunas, senior ETF analyst for Bloomberg Intelligence. “If you look on the bond side, TIPS funds are among the best performers in a not-great year for bonds.”