The phrase “real assets” refers to a category of tangible investment options, such as hard commodities, natural resource companies, and real estate (versus stocks, bonds, and CDs, which are “paper” assets). Investing in these assets may provide:

  • Inflation Protection. Real assets tend to keep their value in inflationary environments, thereby helping preserve purchasing power.
  • Since real assets historically tend to rise in value when traditional asset classes (such as stocks and bonds) fall, they may reduce overall portfolio volatility and risk.
  • Global Exposure. Real assets can provide global exposure without the risk and cost of investing directly overseas.

How is this strategy allocated?

  • 30-50% to three broad category ETFs covering real estate, natural resources, and commodities. Weightings are based on equity valuations, overall global economic outlook, and attractiveness of various sectors relative to fundamental factors, such as the strength/weakness of the U.S. dollar, global demand for natural resources, and the condition of global real estate and equity markets.
  • 0-50% to real assets ETFs, such as agriculture, metals, energy, and U.S. REITS.
  • 0-50% to ETFs of specific commodities, such as gold, oil, and cotton.