Q: With the threat of inflation moving back up, would you find a place for either of these funds in a portfolio today? Thanks, great service.
5i Research Answer:
ZRR's performance in the 2022 inflation spike was a bit disappointing, as the yield curve did some weird things that did not benefit the fund as much as expected. Still, we would consider it a decent fund for those seeking at least some inflation protection. Yield is 4.66% which is decent while one waits. We would be comfortable with XRE generally, BUT, in an inflation scenario it could weaken if rates rise at the same time. We like it for income, but would not specifically call it an inflation-hedge type of fund.