Advisors Turn to ETFs After PPI Jumps to 6%

The Producer Price Index increased to a 6% annual rate in April 2026, the highest reading since late 2022. The April PPI followes a hotter-than-expected Consumer Price Index report that showed headline CPI at 3.8% year-over-year, up from 3.3% the prior month.

Energy costs rose 3.8% month-to-month in April, and retail electricity prices are climbing at roughly twice the pace of headline CPI. Those supply-side pressures have prompted financial advisers to adjust client portfolios to limit the impact of higher producer and energy prices on purchasing power.

Advisers are adding exposure to multi-asset real-return ETFs, natural-resource funds and commodity ETFs. These funds typically combine inflation-linked bonds, commodity holdings and shares of companies in energy, materials and industrials to provide a single-ticket exposure to assets that historically react to higher raw-material costs.

Treasury Inflation-Protected Securities remain a common holding for inflation defense, but advisers are adding real assets alongside TIPS. Inflation-linked bonds can lose market value when real interest rates rise even if headline inflation is elevated; funds that include commodities and natural-resource equities provide direct claims on physical goods and companies with pricing power in tight markets.

Several ETFs attracting attention include the AXS Astoria Real Assets ETF (PPI), which invests across energy, industrials and materials and holds positions such as gold and large global energy firms. The State Street Multi-Asset Real Return ETF (RLY) spreads allocations across natural resources, global infrastructure, commodities and inflation-linked bonds. The WisdomTree Inflation Plus Fund (WTIP) pairs TIPS exposure with a commodity overlay; its commodity component helped performance relative to broad TIPS benchmarks in early 2026.

Within the sector, some advisers pick funds aimed at income or specific segments of the supply chain. The Amplify Energy & Natural Resources Dividend Income ETF (NDIV) uses a covered-call approach and reports a yield above 10%. The FlexShares Morningstar Global Upstream Natural Resources Index Fund (GUNR) focuses on upstream companies where pricing power is concentrated.

Market returns have supported the reweighting. The S&P Global Natural Resources Index has outpaced the S&P 500 by more than 12% year-to-date in early 2026, reflecting strength in commodities and related equities as prices and demand have risen.

Advisers typically blend these ETFs with existing fixed-income holdings rather than replace TIPS entirely. Multi-asset real-return ETFs are being used to complement traditional inflation hedges, adding commodity-linked upside while maintaining some inflation-linked bond exposure. Portfolio changes are being matched to client goals such as income needs, real-return protection and sector diversification.

The PPI measures changes in wholesale prices and can foreshadow future movements in consumer inflation as higher producer costs flow through the supply chain. Rising wholesale and energy prices in early 2026 have led advisers to reassess allocations and to add ETFs that combine inflation-linked bonds, commodities and natural-resource equities.