CPI Inflation Data Hits Thursday: 5 ETFs With Potential For Wild Market Moves
Portfolio Pulse from Piero Cingari
The Bureau of Labor Statistics is set to release the July Consumer Price Index (CPI) data on Thursday, which could significantly impact market expectations for future Fed rate hikes. Economists predict the annual inflation rate will rise from 3% to 3.3% in July. Five ETFs that could experience significant fluctuations based on this data are ProShares Trust VIX Short-Term Futures ETF (VIXY), Vanguard Growth ETF (VUG), ARK Innovation ETF (ARK), Fidelity Stocks for Inflation ETF (FCPI), and Simplify Interest Rate Hedge ETF (PFIX).
August 09, 2023 | 6:33 pm
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NEGATIVE IMPACT
The ARK Innovation ETF could face downward pressure if inflationary pressures reemerge.
The ARK Innovation ETF is sensitive to inflation data and rate expectations. A reemergence of inflationary pressures could potentially place some downward pressure on the ETF.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The Vanguard Growth ETF could slow down or reverse its trajectory if price pressures resurge.
The VUG ETF is linked to the decline in consumer inflation. A resurgence in price pressures could potentially slow down or reverse its trajectory.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
The VIXY ETF could experience increased volatility if inflation is higher than expected.
The VIXY ETF is designed to mirror the performance of the VIX Short-Term Futures Index, which means it could be impacted by higher-than-expected inflation.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The Fidelity Stocks for Inflation ETF could perform well if inflation returns.
The FCPI ETF invests in stocks that may be better positioned to perform well during inflationary periods. If inflation returns, this ETF could perform well.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The Simplify Interest Rate Hedge ETF could surge if inflation experiences an upswing.
The PFIX ETF is designed to provide investors with a safeguard against potential increases in interest rates. If inflation experiences an upswing, the demand for this ETF is likely to surge.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80