Japan Alternative

Japan Alternative Funds or ETFs invest the majority of their assets in... Japan Alternative Funds or ETFs invest the majority of their assets in so-called alternative assets in Japan. 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 Japan 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. Japan is a leading market for alternative investments in Asia. Since 2019, the number of Japanese investors allocating to this asset class has jumped 50%. However, the large Japanese Government Pension Investment Fund is a laggard in this respect: as of 2022 it allocated less than 2% of its assets to alternatives. Japan 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: 01/23/2025 View more View less

Japan Alternative Funds or ETFs invest the majority of their assets in so-called alternative assets in Japan. Alternative assets are generally defined as any asset other than publicly traded stocks, bonds, mutual funds,... Japan Alternative Funds or ETFs invest the majority of their assets in so-called alternative assets in Japan. 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 Japan 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. Japan is a leading market for alternative investments in Asia. Since 2019, the number of Japanese investors allocating to this asset class has jumped 50%. However, the large Japanese Government Pension Investment Fund is a laggard in this respect: as of 2022 it allocated less than 2% of its assets to alternatives. Japan 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: 01/23/2025 View more View less