Rising inflation erodes buying power and can diminish investment returns. Where can investors turn? To "inflation-sensitive" assets with the potential to benefit, directly or indirectly, from rising prices.
AXS Astoria Inflation Sensitive ETF (PPI) is an actively managed, broadly diversified ETF that seeks long-term capital appreciation in inflation-adjusted returns. Renowned ETF experts at Astoria Portfolio Advisors manage PPI by investing where the opportunities are: cyclical stocks (such as financials, energies, industrials and materials), commodities and TIPS.
Designed to hedge against inflation and generate appreciation through inflation-sensitive investments.
Gives investors a one-stop inflation strategy with multi-asset exposure to equities, commodities and TIPS.
Managed by Astoria Portfolio Advisors with deep expertise in ETF investing and inflation strategies.
Inception Date: 12/29/2021
Distribution Frequency: Quarterly
Management Fee: 0.70%
Total Operating Expense*: 0.71%
Astoria Portfolio Advisors is a leading investment management firm and ETF Strategist, specializing in research driven, multi-asset ETF and inflation-sensitive strategies. The firm’s services include investment management, research and sub-advisory services.
John Davi leads the portfolio management team for PPI. He is an award-winning research strategist with over 20 years of experience as an ETF industry leader and innovator. Mr. Davi’s groundbreaking work has spanned across quantitative research, portfolio construction and ETF strategies. Read Bio
Astoria Portfolio Advisors
Founder and CIO
Frequently Asked Questions
When did the AXS Astoria Inflation Sensitive ETF launch?
AXS Astoria Inflation Sensitive ETF launched on December 30, 2021.
What is the fund ticker?
PPI. Related to but not to be confused with the Producers Price Index, which tracks prices paid by producers for goods and services.
Where is the fund traded?
The ETF trades on the New York Stock Exchange (NYSE).
Who manages the fund?
AXS Investments, a leading alternative asset manager, serves as the fund’s investment adviser. The portfolio manager is Astoria Portfolio Advisors with the investment team led by ETF industry veteran and CIO John Davi, who founded the firm. The strategy began as a solution for Astoria’s institutional clients to hedge against inflation. It was introduced as an ETF, enabling wider accessibility to all investors.
What does “inflation sensitive” mean?
Inflation, the rise in general price levels of goods and services, poses challenges for many companies that can adversely affect profitability and the value of the stocks and bonds they issue. On the other hand, some companies, sectors and assets, can inherently benefit, directly or indirectly, from inflationary environments. These are considered “inflation-sensitive” assets and investing in them during inflationary environments can potentially deliver relatively better returns than the general markets.
Does PPI track an index?
No, the fund is actively managed by Astoria Portfolio Advisors who continually monitor its investment allocation and can change the investment mix at any time.
What types of assets does PPI hold?
PPI invests in securities across multiple assets classes that have the potential to benefit, either directly or indirectly, from increases in the rate of rising costs of goods and services.
These may include equity securities of companies engaged in the energy, financials, industrial, and materials sectors, as well as investments in other ETFs that invest in commodities and fixed income securities. Examples of companies that we believe may benefit from rising inflation include: financial services companies, consumer discretionary companies (such as homebuilders and household durables), companies producing industrial machinery, metals and steel, and companies engaged in the exploration, production, transportation and mining of commodity assets (such as oil, gas, coal, agriculture, minerals and other real assets, including the passive ownership of royalties or production streams of such assets).
PPI may invest in other ETFs with exposure to commodities that we believe may benefit from higher demand, elevated global growth, or a shortage of supply, such as Brent & WTI crude, copper, natural gas, gold, silver, platinum, palladium, soybean, live cattle, coffee, and corn.
In additional, the fund may hold ETFs invested in inflation-protected public obligations of the U.S. Treasury, commonly known as “TIPS.”
Important Risk Information
There is no guarantee the sectors or asset classes the advisor identifies will benefit from inflation. Fund may invest a larger portion of its assets in one or more sectors than many other funds, and thus will be more susceptible to negative events affecting those sectors.
Equity Securities Risk: Equity securities may be particularly sensitive to rising interest rates, as the cost of capital rises and borrowing costs increase. Equity securities may decline significantly in price over short or extended periods of time, and such declines may occur in the equity market as a whole, or in only a particular country, company, industry or sector of the market.
Commodities Risk: Commodity prices can have significant volatility, and exposure to commodities can cause the value of the Fund’s shares to decline or fluctuate in a rapid and unpredictable manner. The values of commodities may be affected by changes in overall market movements, real or perceived inflationary trends, commodity index volatility, changes in interest rates or currency exchange rates, population growth and changing demographics, international economic, political and regulatory developments, and factors affecting a particular region, industry or commodity.
Futures Contracts Risk: The Fund expects that certain of the Underlying ETFs in which it invests will utilize 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 them.
TIPS Risk: 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.
Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the ETF. Brokerage commissions will reduce returns. NAVs are calculated using prices as of 4:00 PM Eastern Time. The closing price is the midpoint between the bid and ask price as of the close of exchange. Closing price returns do not represent the returns you would receive if you traded shares at other times.