Bolster your portfolio for hot inflation with these ETFs, Bank of America says

Stubborn inflation continues to hang over the economy, but investors can shore up their portfolios to guard against the ill effect of higher prices, according to Bank of America. Two data releases this week showed that inflation still has a long way to go before it reaches the Federal Reserve's 2% goal. The consumer price index rose 0.6% in April, bringing the one-year rate to 3.8% — the highest since May 2023. Wholesale inflation grew 1.4% last month, or 6% on an annual basis — its fastest gain since December 2022. That pickup in prices requires investors to rethink their asset allocations, Bank of America investment and ETF strategist Jared Woodard wrote in a Wednesday note. "In the 2000-2019 era of low inflation, rapid globalization, deflationary tech, and peak demographics, all investors needed was 'US tech & Treasuries,'" he wrote. "Today, the urgent task for asset allocators is to prepare for inflationary boom and stagflationary bust scenarios." Woodard and his team of strategists highlighted a couple of trade ideas that are expected to benefit from inflation. Real assets Commodities have been a winning play for investors, with copper surging to a record close this week and oil prices remaining elevated amid the Iran war. The Bank of America strategists have taken a shine to stock ETFs in metals and mining, as well as master limited partnerships, noting that they are trading below long-term average valuations. …