Real Potential Protection with ETF RLY

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker, financial journalist, and money manager.
bank vault

COVID-19 has swept the country, with rising interest rates and inflation now sweeping the market.

In an economy mired in uncertainty, many investors are wary of squandering their investable funds, and risky investments may seem more frightening than thrilling. However, the following exchange-traded fund (ETF) may be able to afford investors some peace of mind.

That fund is the SPDR SSGA Multi-Asset Real Return ETF (NYSE:RLY), a unique fund that takes a multifaceted approach to combating inflation. RLY combines exposure to inflation-linked bonds with real estate, commodities, Treasury Inflation-Protected Securities (TIPS) and natural resource companies.

Through a fund-of-funds (FOF) structure, RLY aims to achieve real return consisting of capital appreciation and current income. Through its unique structure, the fund manager considers real return to be a rate of return above the rate of inflation. As it is structured as a fund of funds (FOF), the ETF invests in multiple mutual funds, rather than only single stocks, which can be beneficial as it helps to spread out investment risk even more than owning one mutual fund.

RLY has an expense ratio of 0.50% and a 1.93% dividend yield. The fund has $131.08 million in assets under management and an average daily volume of $1.28 million. Though the fund fell to a low in November 2020, it has progressed steadily higher and is now at the high end of its 52-week range.

RLY’s top five holdings include Invesco Optm Yd Dvrs Cdty Stra No K1 ETF (PDBC), 25.16%; SPDR S&P Global Natural Resources ETF (GNR), 24.61%; SPDR S&P Global Infrastructure ETF (GII), 21.75%; SPDR Blmbg Barclays 1-10 Year TIPS ETF (TIPX), 8.51% and SPDR Dow Jones REIT ETF (RWR), 4.02%.

The fund’s underlying portfolio is evenly balanced, and exposure is split fairly equally among each of the aforementioned asset classes. Though it is not an ETF that is expected to deliver sky-high gains, SPDR SSGA Multi-Asset Real Return ETF (NYSE:RLY) may be a good tool for investors who are worried about preserving their capital, as inflationary pressures are mounting. Still, investors whose interest is piqued should conduct their due diligence and decide whether or not the fund is an appropriate choice for their investment needs.

Like This Article?
Now Get Jim's FREE Special Report:
The Top 11 Dividend ETFs to
Buy Right Now

Get up to 5X the yields of traditional income plays.

Get Access to the Report, 100% FREE


img
previous article

Five biopharmaceutical stocks to buy to seize upon genetic advances still appear to have room for plenty of appreciation, according to seasoned market trackers who I asked to provide recommendations. The five biopharmaceutical stocks to buy to tap into genetic research inroads include companies that collectively are seeking to find effective treatments for amyotrophic lateral sclerosis (ALS) and muscular dystrophy, among others. As a former fundraiser for the Muscular Dystrophy Association (M

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader
LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Profits Alert
  • Hi-Tech Trader
LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • Intelligence Report
  • Bullseye Stock Trader
LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program
LEARN MORE HERE

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Technical Traders Alert
  • Success Trading Group
LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor
LEARN MORE HERE