Alternative investments for individual investors using ETFs

by etienner

I’m not saying investors should definitely buy these, I just think it would be nice to discuss alternative investments that are available in the ETF market.

S&P 500 5yr return: 9.18%

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Asset class Recommended ETF Correlation to SP500 5YR Return
REITS VNQ 0.46 7.73%
Managed Futures FMF 0.19 -1.63%
Commodities DBC 0.29 -8.77%
BDCs BIZD 0.60 2.41%
Agg. Bonds BND -0.14 2.44%
Long Term Treasuries TLT -0.22 6.01%
Cash NEAR 0.26 1.21%
M&A Arbitrage MNA 0.33 3.99%
CEFs PCEF 0.74 4.93%

*Correlations are from 2014 to 2019

If you know about any other investments that would be considered uncorrelated to the S&P 500 or have any comment on the ETFs mentioned above, feel free to comment!

 

 

Disclaimer: Consult your financial professional before making any investment decision.

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