How an ETF Can Add Benefits in Real Asset Investing

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By Marie Dzanis


Disappointing global economic growth in the recent past has moved central banks to intervene with aggressive monetary policy, fueling the drive toward riskier asset classes. Inflation has been muted and traditional fixed income assets have not provided the yield necessary to meet short and long-term income needs. In response, an increasing number of investors are looking to other asset classes to serve as sources of income and to maintain purchasing power.

Institutional investors have long incorporated real asset classes such as commodities, real estate, agricultural land or oil into their portfolios. The potential advantages to these types of exposure are many, and include dampening inflation risk, improving portfolio efficiency, accessing stable bond-like yields and participating in equity-like capital appreciation.

Related: 7 Reasons Why an ETF is Today’s Mutual Fund Alternative