AXS Investments is launching its first ETF in the US, the AXS Astoria Inflation Sensitive ETF (PPI), supported by team of ETF industry veterans.
The firm writes that PPI is a multi-asset ETF designed to combat the pernicious effects that inflation can have on a portfolio, a major concern for all investors as inflation has recently flared up to levels not seen since the 1980s.
PPI is actively managed by ETF veteran John Davi, founder and CIO of institutional manager Astoria Advisors, and designed as a one-stop allocation to investments believed to be best positioned to benefit from an inflationary environment. The portfolio includes a dynamic mix of historically inflation-sensitive stocks and ETFs, including commodities, TIPS, cyclical stocks such as industrials, materials, banks, home builders, and more.
“An ETF comprised of a broad range of inflation-sensitive assets requires highly specialized and experienced active management, and we believe there’s no one better suited to manage this strategy than John Davi,” says Greg Bassuk, Chief Executive Officer of AXS Investments, and previously founder of IndexIQ. “He and the Astoria team have a long history of success in managing inflation-sensitive portfolios for RIAs and financial advisors, and we are thrilled to partner with them to bring PPI to market at such a crucial time for advisors and investors to position their portfolios for the dramatic return of inflation we’re expecting into 2022.”
“After years of managing ETF portfolios, I could not be more excited to team up with AXS to bring this first-of-its-kind ETF to market,” says Davi. “To this point, ETF investors have been largely forced to select among a menu of single-exposure inflation-sensitive strategies, but commodity-only, equity-only and TIPS-only strategies each have drawbacks and limitations, as different asset classes behave differently in inflationary environments and often in unexpected ways. An expansive multi-asset class approach offers investors a compelling way to dynamically hedge inflation and potentially generate positive, real rate adjusted investment results.”
AXS is planning a major expansion of its ETF suite in 2022 and beyond, and has included in its leadership team, a number of other ETF industry veterans, including Ben Fulton, who has been in ETFs for more than 25 years, including as a driving force behind the exponential growth of PowerShares and, later, Invesco’s global ETF business.
“Launching PPI is an outstanding way for our team to close out 2021, but we are just getting started when it comes to the AXS ETF business,” says Bassuk. “In the coming months, we’ll be aggressively building out our ETF lineup to complement our existing family of differentiated alternative funds, including by partnering with leading investment managers to launch ETFs based on their success and pedigree as leaders in their respective categories.”
“AXS is about access, and we believe our ETFs will provide investors and advisors with access to cutting-edge strategies and best-in-class managers as we endeavor to build what will soon become one of the more compelling ETF lineups in the space,” says Fulton.
“Launching our first ETF with someone of John Davi’s caliber speaks volumes about the nature of funds and the types of teams we’ll be partnering with going forward. The ETF market is ripe for a new level of innovation, and we are excited to trailblaze at this unique and defining time in the global ETF industry’s continued evolution.”