2 of the Best ETFs to Buy When Inflation Is Running Hot

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Two ETFs Worth Watching as Inflation Bites

Inflation is climbing, and these ETFs have historically shielded portfolios when prices rise.

Inflation at 3.4% and possibly creeping higher puts pressure on traditional stocks and bonds alike. Locally, South African investors know the sting when input costs rise and margins tighten. Two US-listed ETFs, Avantis Inflation Focused (AVIE) and VanEck Real Assets (RAAX), have shown resilience during similar periods. AVIE targets sectors that benefit or hold stable earnings amid inflation—energy and healthcare being key. That matters locally because companies like Sasol face real cost pressures, and healthcare demand remains steady regardless of price swings. RAAX leans heavily into commodities and real assets, which historically track inflation more closely. Commodities remain relevant to JSE investors, especially with rand volatility cushioning or amplifying cost shocks. These ETFs come with a trade-off—they tend to lag in bull markets. If the global inflation story resolves sooner than expected, or if the rand unexpectedly strengthens against the dollar, these funds could stumble. Still, with inflation pressures around, they deserve a look as part of a diversified approach that isn’t dazzled just by growth stocks. this is just our opinion and not financial advice