The Merk Stagflation ETF invests in gold, oil, real estate, and inflation-protected bonds—dynamically rebalancing allocations.
PALO ALTO, Calif. (PRWEB) May 04, 2022
Merk Investments launches the Merk Stagflation ETF. The ETF will trade on the NYSE Arca under the symbol “STGF.” The Merk Stagflation ETF (STGF) provides investors with exposure to investments that are expected to benefit, either directly or indirectly, from persistent inflation, including in an environment of weak economic growth (stagflation).
- The Merk Stagflation ETF (ticker: STGF) seeks to track the Solactive Stagflation Index, which in turn seeks to track the performance of components that are expected to benefit, either directly or indirectly, from persistent inflation, including in an environment of weak economic growth (stagflation).
- STGF is a dynamic basket of inflation hedges. Adhering to a systematic trend-following methodology, the Merk Stagflation ETF invests in gold, oil, real estate, and Treasury Inflation Protected Securities (TIPS)—dynamically rebalancing allocations.
“The Merk Stagflation ETF is designed to provide appreciation potential and inflation-sensitive income in an environment of stagflation like that of the 1970s—characterized by high inflation rates, a bull market in commodities, and rising real estate prices. The strategy holds a basket of exposures across three asset classes: inflation-protected bonds, commodities, and real estate.” explains Axel Merk, President and Chief Investment Officer of Merk Investments.
Daniel Lucas, Managing Director - Quantitative Research & Trading, expands: “Allocation weights are systematically calculated and dynamically rebalanced using a proprietary trend-following methodology. It was in part inspired by the great success that trend-following strategies had in the 1970s.”
Nick Reece, Vice President - Macro Research and Investment Strategy, adds: “This is the first stagflation-themed ETF in the market. We think STGF will be embraced by advisors and retail investors concerned about inflation and about the outlook for traditional 60/40 portfolios more broadly—and that might be looking for an alternative to traditional fixed income allocations.”
Axel Merk sums up by saying: “The Merk Stagflation ETF is a cost-efficient, one-click inflation hedge ETF, proving exposure to investments that might be a valuable diversifier in a stagflationary environment—while cutting out the headache of rebalancing trades.”
For important information about the Merk Stagflation ETF, including how to obtain a prospectus and how to invest, please visit http://www.merkfunds.com.
About Merk Investments
Merk’s mission is to help our clients achieve superior risk-adjusted portfolio performance. Through a robust investment process, we aim to deliver truly uncorrelated returns that seek optimal profit potential within tailored investment objectives. Merk Investments provides investment advice on liquid global markets, including domestic and international equities, fixed income, commodities and currencies and their respective derivative markets. Merk White Papers and other primary research can be found at http://www.merkinvestments.com. The Merk Funds® include the Merk Hard Currency Fund (MERKX), the VanEck Merk Gold Trust (NYSE:OUNZ), and ASA Gold & Precious Metals (NYSE:ASA).
This information does not constitute a solicitation or an offer to buy or sell any investment security, nor provide investment advice. Merk Investments LLC.
Merk Stagflation Disclosure
Principal payments for Treasury Inflation-Protection Securities are adjusted according to changes in the Consumer Price Index (CPI). While this may provide a hedge against inflation, the returns may be relatively lower than those of other securities. Similar to other issuers, changes to the financial condition or credit rating of the U.S. government may cause the value of the Fund’s exposure to U.S. Treasury obligations to decline.
The Fund may be sensitive to changes in the price of gold. Real estate is highly sensitive to general and local economic conditions and developments. The U.S. real estate market may experience and has, in the past, experienced a decline in value, with certain regions experiencing significant losses in property values.
Several factors may affect the price of crude oil and, in turn, the WTI crude oil futures contracts. These factors include, but are not limited to, significant increases or decreases in the available supply or demand of crude oil, large purchases or sales of crude oil by governments or large institutions, other political factors such as new regulations or political discord in oil producing countries, as well as a significant increase or decrease in crude oil hedging activity by crude oil producers.
The Fund may be exposed to futures contracts for its commodities investments. The risk of a position in a futures contract may be very large compared to the relatively low level of margin the underlying ETF is required to deposit. In many cases, a relatively small price movement in a futures contract may result in immediate and substantial loss or gain to the investor relative to the size of a required margin deposit. The prices of futures contracts may not correlate perfectly with movements in the securities or index underlying the contract.
The Fund is not actively managed and the Adviser would not sell shares of an equity security due to current or projected underperformance of a security, industry, or sector unless that security is removed from the Index or the selling of shares of that security is otherwise required upon a rebalancing of the Index as addressed in the Index methodology.
ETF shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. NAV returns are calculated using the daily 4.00 pm net asset value (NAV). Market price returns reflect the midpoint of the bid/ask spread as of the close of trading on the exchange where Fund shares are listed. Market price returns do not represent the returns you would receive if you traded shares at other times.
Before investing you should carefully consider the Fund's investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be downloaded at merkfunds.com. Please read the prospectus carefully. Foreside Fund Services, LLC, distributor.
“Solactive AG (“Solactive”) is the licensor of the Solactive Stagflation Index (the “Index”). The financial instruments that are based on the Index are not sponsored, endorsed, promoted or sold by Solactive in any way and Solactive makes no express or implied representation, guarantee or assurance with regard to: (a) the advisability in investing in the financial instruments; (b) the quality, accuracy and/or completeness of the Index; and/or (c) the results obtained or to be obtained by any person or entity from the use of the Index. Solactive reserves the right to change the methods of calculation or publication with respect to the Index. Solactive shall not be liable for any damages suffered or incurred as a result of the use (or inability to use) of the Index.”