As inflation concerns continue to influence market dynamics in 2025 — especially after the most recent CPI print — investors are increasingly seeking equity-based strategies that can provide protection against rising prices. Several new and existing ETFs have emerged, each with distinct approaches to address inflation risk through sector exposure, asset allocation, and portfolio construction.
Horizon Focuses on Inflation Winners
The $1.3 billion Horizon Kinetics Inflation Beneficiaries ETF (INFL) stands out for its concentrated strategy and high-conviction portfolio. The fund invests in companies expected to benefit directly from inflation, particularly those with pricing power and real asset exposure including Archer-Daniels-Midland, Texas Pacific Land, and Viper Energy Partners. With only 41 holdings, INFL is more narrowly focused than its peers, targeting niche opportunities such as landowners and commodities-linked firms.
As a result, the fund has been relatively volatile but also rewarding, returning 9.72% year-to-date, according to YCharts. This actively managed strategy comes at a premium, however, with an expense ratio of 0.85%, the highest among the group.
Fidelity Combines Multifactor Equity Selection
The $226 million Fidelity Stocks for Inflation ETF (FCPI) by contrast invests predominantly in U.S. large- and midcap stocks, with a particular focus on sectors sensitive to inflation such as energy, materials, and consumer staples. Notable holdings include Apple, Microsoft, and ExxonMobil, reflecting a blend of growth and inflation-resilient companies.
The index-based fund uses a multifactor model emphasizing valuation, quality, and momentum, while weighting its holdings by market capitalization. FCPI aims to provide investors with broad equity market exposure tailored to withstand inflationary pressures. With an expense ratio of 0.16%, FCPI has achieved a 8.43% return YTD, per YCharts.
Avantis Emphasizes Profitability & Valuation
The Avantis Inflation Focused Equity ETF (AVIE), with roughly $6 million in assets, takes a fundamentally driven approach, investing in U.S. companies that demonstrate strong profitability and attractive valuations. AVIE is another actively managed fund that targets inflation-sensitive sectors like industrials and materials. Top holdings include Berkshire Hathaway, Coca Cola, and Procter & Gamble.
