Developed Markets Alternative

Developed Markets Alternative Funds or ETFs invest the majority of their assets... Developed Markets Alternative Funds or ETFs invest the majority of their assets in so-called alternative assets in Developed Markets. Alternative assets are generally defined as any asset other than publicly traded stocks, bonds, mutual funds, money market funds, or cash. Common alternative assets include hedge funds, real estate, private equity, venture capital, precious metals and other commodities, infrastructure, cryptocurrencies, and collectibles (such as art). A Developed Markets Alternative Fund or ETF may be actively or passively managed, and may, depending on its mandate, invest in one or more alternative asset classes. Alternative assets have seen tremendous growth in the last few decades. They have received significant investor inflows due to the perception that they can offer better risk-adjusted returns than traditional assets. At times, alternative assets may outperform traditional assets, and they may also exhibit returns that don’t move in lockstep with publicly traded equities and bonds. This can reduce the overall volatility of a portfolio. Developed Markets are at the forefront of interest in Alternatives. For example, assets of North American private equity funds hit US$3.6 trillion as of 2023. In addition, the majority of hedge fund assets under management (AUM) are managed by funds based in North America. Developed Markets also are leaders in commodity investing. For example, the world’s largest gold ETF is listed on the New York Stock Exchange. Developed Markets Alternative Funds or ETFs may be appropriate depending on the alternative in question and an investor’s risk tolerance. It’s important to note that alternatives may not perform as well as they did in the past, and risk aversion in public markets can spread over into alternative assets. Last Updated: 01/29/2025 View more View less

Developed Markets Alternative Funds or ETFs invest the majority of their assets in so-called alternative assets in Developed Markets. Alternative assets are generally defined as any asset other than publicly traded stocks, bonds,... Developed Markets Alternative Funds or ETFs invest the majority of their assets in so-called alternative assets in Developed Markets. Alternative assets are generally defined as any asset other than publicly traded stocks, bonds, mutual funds, money market funds, or cash. Common alternative assets include hedge funds, real estate, private equity, venture capital, precious metals and other commodities, infrastructure, cryptocurrencies, and collectibles (such as art). A Developed Markets Alternative Fund or ETF may be actively or passively managed, and may, depending on its mandate, invest in one or more alternative asset classes. Alternative assets have seen tremendous growth in the last few decades. They have received significant investor inflows due to the perception that they can offer better risk-adjusted returns than traditional assets. At times, alternative assets may outperform traditional assets, and they may also exhibit returns that don’t move in lockstep with publicly traded equities and bonds. This can reduce the overall volatility of a portfolio. Developed Markets are at the forefront of interest in Alternatives. For example, assets of North American private equity funds hit US$3.6 trillion as of 2023. In addition, the majority of hedge fund assets under management (AUM) are managed by funds based in North America. Developed Markets also are leaders in commodity investing. For example, the world’s largest gold ETF is listed on the New York Stock Exchange. Developed Markets Alternative Funds or ETFs may be appropriate depending on the alternative in question and an investor’s risk tolerance. It’s important to note that alternatives may not perform as well as they did in the past, and risk aversion in public markets can spread over into alternative assets. Last Updated: 01/29/2025 View more View less