Investors seeking broad-based real assets exposure can consider the FlexShares Real Asset Allocation Index Fund (NasdaqGM: ASET), which holds three other FlexShares exchange traded funds.
ASET “seeks to provide investors with a core real assets allocation that helps address their inflation-hedging, diversification, and income needs. Designed to serve as a real assets allocation solution, the strategy applies a proprietary optimization to the three underlying funds in an effort to minimize the volatility of returns and lower risk in the fund,” according to FlexShares.
Additionally, ETFs provide one of the most cost-efficient, liquid avenues for investing in real assets.
“ETFs may provide a liquid, diversified vehicle to invest in real assets without the hassle and expense of buying the actual physical asset. We believe ETFs provide daily liquidity and allow investors to participate in this asset class with a lower dollar investment than buying the actual physical assets. Additionally, our research shows that the use of an ETF can potentially make investing in real assets in an IRA easy and hassle-free, which may generally not the case with the actual physical asset,” said FlexShares.
For more information on the commodities market, visit our commodity ETFs category.