The best ETFs to be buying right now
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When inflation is higher, bonds tend to move in the same direction as shares, so they don’t provide much portfolio protection. On the other hand, gold tends to move in the opposite direction to shares. For this reason, we advise clients to also hold a 14.8 per cent allocation to the gold ETF (ASX:GO
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Investors should consider buying exchange-traded funds (ETFs) that provide protection against inflation, according to financial advisers. Bonds tend to move in the same direction as shares when inflation is high, so they don't offer much portfolio protection. However, gold tends to move in the opposite direction to shares, making it a good investment. Advisers recommend holding a 14.8% allocation to the gold ETF (ASX:GOLD) in portfolios.
Top Highlights
- When inflation is higher, bonds tend to move in the same direction as shares, so they don’t provide much portfolio protection. On the other hand, gold tends to move in the opposite direction to shares.
- For this reason, we advise clients to also hold a 14.8 per cent allocation to the gold ETF (ASX:GOLD) in their portfolios.
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