Why invest in Multi-Asset ETFs?
Multi-Asset ETFs are structured to provide income and stability in returns by investing in multiple asset classes in a predefined mix. Typically, these funds are structured to diversify risk and also provide exposure to multiple asset classes including US equities, Emerging Markets, High Yield Bonds, Commodities, Real Estate Investment Trusts and Preferred Stocks among others. Like other passive ETFs these multi-asset ETFs are bench-marked to a multi-asset indices by Zack’s, Morningstar or S&P.
Key factors to consider before investing
- Interest Rates
- Volatility Index
- Correlation between Asset classes in Index
- Passive or Active strategy
- Among other factors