Mike Philbrick
Quadratic Interest Rate Volatility and Inflation ETF
IVOL-N
TOP PICK
Sep 17, 2020
New product. The largest market in the world is OTC rates. Helps hedge against relative interest rate movements. Allows your portfolio to profit from changes in the regimes of growth, volatility and inflation. Yield is 3.62%.
Fixed income is broken. Returns are likely to stay low for a long time. This ETF has a basket of index inflation bonds and some strategies based on yield curve steepening and a hedge on interest rate movement. He loves these kinds of strategies. The MER is 1% but in the fixed income world you have to look at products like this.
(A Top Pick Sep 17/20, Up 6%) Seeing a 5% increase in CPI. Has 70% exposure to real rate of return bonds in the US. There is also an option writing overlay that enhances the portfolio returns when there are interest rate shocks.
Very complex product. Hedge fund like attributes. Not a good option for defensive investors. Complicated - would recommend only for sophisticated investors.
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