This is an actively managed ETF that diversifies broadly across stocks tied to real assets, which tend to hold up relatively well when prices are rising. It allocates most of its net assets to companies with real-asset exposure and selects holdings using a quantitative, top-down approach.

It suits medium- to long-term investors who want both an inflation hedge and diversified exposure to real assets.

It is an ETF run by Astoria with an active management approach.

Through quantitative screening, the fund selects companies that derive a significant portion of their revenue or assets from real assets such as commodities, natural resources, and infrastructure. It is run as an active strategy that evaluates fundamental indicators such as valuation, growth, quality, and momentum from the top down, and adds candidates expected to hold up well in inflationary periods.

• Multi-asset diversified exposure to the real-asset theme
• Active stock selection based on quantitative screening

Assets under management (AUM) stand at $157.0M, and the expense ratio is 0.57% per year.

Rather than concentrating on a single commodity or one sector, the fund is structured to spread its exposure across real assets as a whole.

Its performance tends to react sensitively to inflation expectations and to commodity and energy cycles. It can show relatively resilient results when price pressures are rising, but volatility can increase when the cycle slows.

When demand for inflation hedges comes to the fore, investor interest tends to gather around the real-asset theme. Conversely, when expectations of stable prices prevail, fund flows can slow, so inflows and outflows vary with the macro environment.

Its strengths are real-asset diversification and an inflation-defensive character, while its weaknesses are its dependence on the macro environment and the burden of active management fees.

CGBL and ALLW, shown in the table, are multi-asset allocation ETFs that hold stocks, bonds, and real assets together, making them natural comparisons, while IALT, DRSK, and CTA pursue different forms of diversification such as alternative strategies and managed futures. For options that target the inflation and real-asset theme more directly, you can also consider PDBC, which invests in a broad commodity basket, and XLE, which concentrates on the energy sector.

Here are the points to review before investing in PPI. Because it is an actively managed ETF with an inflation-defensive character, it is wise to check the macro environment, costs, and management approach carefully in advance.

Inflation expectations and a slowdown in the commodity cycle are the main drivers of short-term volatility. Given the nature of the real-asset theme, performance can be weak in periods when the macro environment is unfavorable.

It is a fitting choice for investors who want both inflation defense and real-asset diversification. If you simply want multi-asset allocation, we recommend also comparing CGBL and ALLW, and if you want direct exposure to commodities, PDBC.