As the real estate market adapts, diversify with ASET

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The real estate market is constantly evolving, especially with regard to millennial trends, giving more credibility to diversification through ETFs like the FlexShares Real Asset Allocation Index Fund (ASET).

Investors who are considering real estate may not like the idea of ​​owning a home. This is especially the case when it comes to millennial tenants who no longer want to sign long-term leases.

Rather, they seek the flexibility of short-term leases. It may seem confusing to homeowners looking for long-term tenants to provide that stable income, but they need to adapt to this new trend.

“People share time between cities. Younger people can’t afford to sign 12 month leases, ”said Daniel Mishin, Founder and CEO of June Homes. “So people are looking for flexibility, convenience and ease. “

ETFs like ASET can give investors access to real estate without the headache of being an owner. Real estate comprises most of the fund, but does not completely dominate its holdings.

“The FlexShares Real Asset Allocation Index Fund (A SET) aims to provide comprehensive exposure to real assets in real estate, infrastructure and natural resources, ”said an analysis of the ETF database.

These real assets also help provide a hedge against inflation. Rising real asset prices can help avoid the inflationary effects of a portfolio, especially if bonds are part of the investment mix.

All real assets in one position

When it comes to the actual assets to hold, ASET takes all the guesswork out of it. Additionally, volatility is minimized due to ASET holding companies representing actual exposure to assets versus actual tangible assets themselves.

ASET seeks investment results that generally match the price and return of the Northern Trust Real Assets Allocation IndexSM. The underlying index measures the performance of an optimized allocation to the underlying funds which aims to provide exposures to certain real assets and to minimize the overall volatility of an investment in the underlying funds.

As of September 23, the top three sector allocations include materials, real estate and industrials. In addition, ASET takes a holistic approach by also investing in countries other than the United States, including Canada, United Kingdom and Japan.

For more news, information and strategy, visit the website Multi-asset channel.


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