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An All-in-One Inflation Hedge

Principal Diversified Real Asset offers investors exposure to a greater variety of inflation-hedging asset classes than its peers do.


Jeff Holt: This week's medalist is Principal Diversified Real Asset (PRDAX). It's a conservative-allocation fund that focuses specifically on inflation-hedging asset classes.

Compared with other strategies that invest in inflation-hedging asset classes, this fund invests in more asset classes and also uses external subadvisors in most of those asset classes. So, in terms of asset classes, it includes the typical inflation-hedging asset classes like REITs, commodities, [Treasury Inflation-Protected Securities], but it also includes other asset classes like infrastructure stocks, master limited partnerships, and even floating-rate debt.

Jeff Holt does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.