Abstract
Investors are looking for strategies that can deliver positive results in an environment characterized by rising inflation. Traditional assets like stocks and bonds tend to deliver meager returns in periods of rising inflation. Real assets-inflation-protected bonds, commodities, real estate, and natural resources stocks-have demonstrated the ability to provide significant inflation protection. A blend of these real assets has historically delivered attractive risk-adjusted returns in inflationary and non-inflationary environments. Many leading endowments have included allocations to real assets for several years, allocating as much as 30% of their portfolios to real assets. A real assets strategy can be easily implemented using exchange traded products, including exchange traded funds (ETFs) and exchange traded notes (ETNs). There are a wide range of exchange traded products available in the TIPS, REIT, natural resources stock, and commodity asset classes.
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