EAFE Alternative

EAFE Alternative Funds or ETFs invest the majority of their assets in... EAFE Alternative Funds or ETFs invest the majority of their assets in so-called alternative assets in the EAFE countries (Europe, Australasia, and the Far East). 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). An EAFE 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. Depending on the region within EAFE, different alternative investments are the most popular. In the Far East, gold and precious metals remain favored investments. In Europe, hedge funds and private equity are popular. In Australasia, real estate investing has been a go-to play, particularly with Australia’s housing boom. EAFE 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

EAFE Alternative Funds or ETFs invest the majority of their assets in so-called alternative assets in the EAFE countries (Europe, Australasia, and the Far East). Alternative assets are generally defined as any asset... EAFE Alternative Funds or ETFs invest the majority of their assets in so-called alternative assets in the EAFE countries (Europe, Australasia, and the Far East). 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). An EAFE 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. Depending on the region within EAFE, different alternative investments are the most popular. In the Far East, gold and precious metals remain favored investments. In Europe, hedge funds and private equity are popular. In Australasia, real estate investing has been a go-to play, particularly with Australia’s housing boom. EAFE 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