In the current extended bull market rally, the atypical investing backdrop has shifted traditional ideas about real asset portfolio applications.
In the upcoming webcast, Real Asset Insights – Why Investors Should Re-Think Their Positioning in Real Assets, Mark Carlson, Senior Investment Strategist, FlexShares Exchange Traded Funds, will delve into various real asset opportunities and how exposure to categories such as infrastructure, natural resources, and real estate can diversify a traditional portfolio mix.
Specifically, infrastructure ETFs, such as the FlexShares STOXX Global Broad Infrastructure Index Fund (NYSEArca: NFRA), offer investors sound fundamentals and above-average dividend yields, making the asset class appealing in the current market environment. NFRA tries to reflect the performance of the STOXX Global Broad Infrastructure Index, which identifies equities that derive the majority of revenue from infrastructure business, providing exposure to not only infrastructure sectors, but non-traditional ones as well.
The FlexShares Morningstar Global Upstream Natural Resource Index Fund (NYSEArca: GUNR) provides exposure to the rising demand for natural resources and tracks global companies in the energy, metals and agriculture sectors while maintaining a core exposure to the timberlands and water resources sectors, is a part of the risk management theme. GUNR specifically identifies upstream natural resources equities based on a Morningstar industry classification system, with a balanced exposure to three traditional natural resource sectors, including agriculture, energy, and metals.
Lastly, the FlexShares Global Quality Real Estate Index Fund (NYSEArca: GQRE) targets the Northern Trust Global Quality Real Estate Index, a fundamentally-weighted index that focuses on commercial and residential REITs. Mortgage REITs, real estate finance companies, mortgage brokers and bankers, commercial and residential real estate brokers, and real estate agents and home builders are among the securities excluded from the index. GQRE also features significant ex-US exposure, a trait that should serve the fund as a slew of central banks besides the Federal Reserve consider lowering interest rates. While REITs are trading at the higher end of historical valuation ranges, the group is generating robust cash to support dividend hikes.
Financial advisors who are interested in learning more about real asset investments can register for the Thursday, November 7 webcast here.