A fixed-weight inflation-hedge basket (VDC 30%, DBC 30%, GLD 20%, TBF 20%) with no automatic rebalancing, designed to perform in inflationary scenarios using staples, commodities, gold, and short Treasuries; notes ETF risks and the impact of daily-reset mechanics on long-run results.

A fixed-weight ETF basket designed to perform better when inflation accelerates. 30% VDC provides defensive equity exposure to consumer staples; 30% DBC captures broad commodity exposure (energy, agriculture, metals); 20% GLD adds gold as a traditional inflation hedge; 20% TBF bets on rising rates and falling long-term bond prices. No automatic rebalancing is applied; drift is allowed but not corrected automatically. If inflation surges, commodities and gold may rise while long-dated Treasuries fall, potentially boosting TBF. If inflation remains tame or rates don’t rise, some components may lag, and the overall performance may be weaker. Investing in ETFs introduces risks like fees, tracking error, and for TBF, daily resetting can affect long-run returns. Always review the ETF prospectuses and understand the costs before investing.

Inflation-hedge basket designed to dampen drawdowns and boost risk-adjusted returns. OOS Sharpe 1.37 vs 0.82, Calmar 1.44, max drawdown ~9% vs 22%, beta ~0.20, ~12.8% OOS return. Lower risk, steadier gains than the S&P 500.