As your family and career both continue to grow and evolve, so too should your investment portfolio. But what if you’re feeling a little uninspired with the relative diversity of your portfolio, or are simply unsure about what’s even in it? That’s okay.
You’re probably aware of equities (such as stocks), fixed-income (such as bonds), and mutual fund opportunities, but it might be helpful to explore some additional investment opportunities too.
Exchange Traded Funds (ETFs) are a popular investment vehicle. ETFs offer low-cost access to virtually every corner of the market. According to CNBC, assets for exchange-traded funds will nearly triple in the U.S. (from $2.3 trillion to at least $6.2 trillion) and more than double globally over the next five years.1
The growing field of environmental, social, and governance (ESG) investing is becoming more mainstream every day. Adding ESG funds to your portfolio can help it align with your personal values by investing in companies whose core business is making a positive impact on our environment or society.2
An investment approach that excludes international markets leaves nearly half of the world’s equity investment opportunities on the table and passes up the long-term growth potential overseas. 3
Alternative strategies include, but are not limited to, private equity, real estate, commodities, and derivatives contracts. They often display unique volatility patterns. In other words, when traditional assets zig, alternatives often zag, which can help portfolios become more resilient to today’s inevitable bouts of volatility.
This article is not an endorsement of any particular product, service or organization; nor is it intended to provide financial, tax or legal advice. It is intended to promote awareness and is for educational purposes only.
Citations:
1 CNBC: “ETFs expected to nearly triple in US in next five years” by Jeff Cox, July 12, 2016 https://www.cnbc.com/2016/07/12/etf-industry-expected-to-nearly-triple-in-us-in-next-five-years-pwc-survey-says.html
2 Investment News: “Why it’s time to believe the hype behind ESG investing” by Thomas Hoops, May 15, 2015 https://www.investmentnews.com/why-its-time-to-believe-the-hype-behind-esg-investing-61826
3 MarketWatch: “Six reasons you should invest internationally” by Paul Merriman, April 22, 2015 https://www.marketwatch.com/story/six-reasons-you-should-invest-internationally-2015-04-22