ASSET CLASSES
Asset Classes
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Yes, you can invest in more than just stocks
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The four main classes are equities, derivatives, fixed income, and alternatives
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Classification can differ with the source - there is no true breakdown
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Grey area exists between classes, to find out where read more below
Asset Classes
-
Yes, you can invest in more than just stocks
-
The four main classes are equities, derivatives, fixed income, and alternatives
-
Classification can differ with the source - there is no true breakdown
-
Grey area exists between classes, to find out where read more below
Why Should I Care?​
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Different Asset Classes carry different risk profiles
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Some Asset Classes perform better than others depending on the economic cycle and market conditions
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The best portfolio holds a range of Asset Classes
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Assets of a class can be packaged to form new products
ASSET CLASSES BREAKDOWN
ETFication breaks down asset classes into four major categories: Equities, Fixed Income (synonymous with bonds), Derivatives, and Alternative Assets. However, there is no consensus method for doing so.
Other resources may tell you the same, that there are three classes, nine, or anywhere in between.
DIVING DEEPER INTO ALT ASSETS
There are many more categories...
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ALT
ASSETS
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Alternative Assets are described as everything but stocks, bonds, and cash
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DERIVATIVES
Derivatives are contracts between two parties to buy, sell, or exchange an underlying asset
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FIXED INCOME
Fixed Income refers to securities that pay out fixed interest or dividends until maturity
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EQUITY
Equity measures how much ownership someone has over a company or asset
Account Types
Saving for the future? Learn how different account types such as Roth IRA and 401Ks will enable you to have more financial freedom
Structured Products are pre-packaged investment strategies that include a wide variety of asset classes.
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READ MORE
Product Types
Learn about the power of Exchange-Traded Funds (ETFs) and Mutual Funds (MF) and how they can impact your portfolio
