Morningstar just wrapped up a webinar that looked at investing in alternative asset classes using exchange-traded funds (ETFs). The 50-minute online presentation was hosted by Morningstar's director of ETF and passive investment research, Ben Johnson.
The webinar looked at how investors could use ETFs to access commodities, currencies, property, hedge funds and more. These are generally investments that are not available to individual investors except through ETFs.
“Investing in these increasingly complex asset classes and strategies requires a thorough understanding of the relevant fundamentals and how they will affect the return patterns of the instrument in question,” said Johnson.
Most investors gravitate towards investing in commodities, property and other alternative assets for diversification purposes. However, that might not be the case in the future. “As these various asset classes become increasingly accessible via ETFs, they will inevitably become less ‘alternative’ and more main stream. As this happens, history tells us that their diversification potential and expected risk-adjusted returns may ultimately diminish,” said Johnson.
The BrightTALK-Morningstar webinar was specifically targeted at financial professionals in the UK.
Listen to the presentation by clicking here.
Catch up on previous webinars by clicking here.