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New ETF from CBRE Aims to Deliver Inflation Protection
A New Bet On Real Estate and Hard Assets
CBRE Investment Management has recently launched a new IQ CBRE Real Assets ETF that focuses on real estate investments and other hard assets. The ETF was launched in May and is intended to protect its investors against inflation in an environment with rising interest rates. The portfolio manager for the ETF, Dan Foley, pointed out that there is a lack of options in the ETF market in this particular space. Foley believes that retail investors should follow global financial institutions into this market because there is a lot of opportunity with digital transformation and mispricing in the market.
Diversification Away From Technology
According to Foley, hard assets including real estate and utilities are an important diversifier away from technology stocks, such as those involving artificial intelligence. Hard assets are also crucial in enabling the digital economy because infrastructure companies like data centers and cell towers are needed to make new investments. These investments drive growth for the ETF which, in turn, helps to promote a differentiated outcome.
In today's digital age, technology is at the forefront of innovation and progress. It has revolutionized how we communicate, work, and live our lives. However, there is immense value in diversifying our focus beyond technology. By embracing a wider range of industries and opportunities, we can unlock new possibilities, mitigate risks, and foster a more well-rounded approach to growth and innovation.
Expanding Horizons
While technology has undoubtedly shaped the world we live in, it is important to recognize that there are countless other sectors waiting to be explored. By venturing into diverse industries such as healthcare, renewable energy, or creative arts, we can tap into uncharted territories and unlock fresh perspectives. These industries offer unique challenges and opportunities that can fuel innovation and broaden our horizons.
Reducing Risk
Overreliance on a single industry can be risky. Technology, like any other field, is subject to market fluctuations, disruptive trends, and unforeseen challenges. Diversifying away from technology allows us to spread our risk and protect ourselves from potential downturns. By investing in different sectors, we create a safety net that cushions the impact of any single industry's volatility.
Driving Innovation:Innovation thrives on diversity. By stepping outside the confines of technology, we expose ourselves to a wealth of new ideas, approaches, and problem-solving techniques. Industries like architecture, fashion, or agriculture, for example, offer unique perspectives that can inspire us to think differently and foster cross-industry collaboration. The convergence of different disciplines often leads to groundbreaking innovations that can shape the future.
Achieving Balance
While technology can deliver rapid growth and high returns, it can also be unpredictable and highly competitive. Diversification allows us to achieve a more balanced portfolio, combining stable investments with high-growth potential. By expanding our interests and investments across different sectors, we create a more resilient and sustainable foundation for long-term success.
Embracing Passion
Diversifying away from technology is not solely about financial gain; it's also about personal fulfillment. Each one of us has unique passions, skills, and interests that may not align with the world of technology. By embracing diverse industries, we have the opportunity to pursue our passions and find fulfillment in areas that resonate with our individuality.
While technology continues to shape our world, there is immense value in diversifying beyond its confines. By embracing diversity, we open ourselves up to new perspectives, reduce risk, foster innovation, achieve balance, and follow our passions. So let's step outside the boundaries of technology and explore the wealth of opportunities that await us in other industries. It's time to embrace the power of diversity and unlock our full potential.
Top Holdings for the CBRE ETF According to Issuer New York Life Investments
The top holdings for the CBRE ETF are in real estate and utility sectors, including Public Storage, Crown Castle, Nextera Energy, and Equinix. Equinix is considered one of the world-leading entities and is essential for the new economy. Since the launch of IQ CBRE Real Assets ETF on May 10th, it has been down by almost 6 percent.
Strong Total Return
Foley believes that the fundamentals in the hard asset space are compelling, and the infrastructure elements are in place for a pretty strong total return going forward. The valuations for these assets are quite attractive, and the current segment of the real asset universe is in a very attractive position to drive significant investment.
The Bottom Line
The new ETF from CBRE is poised to provide investors with much-needed protection against inflation. The hard asset sectors, including real estate and utilities, remain well-positioned to deliver solid returns going forward. It can offer investors a unique opportunity for diversification, particularly when it comes to investing into technology stocks. With less competition in this space, investors might be able to capture greater rewards.
In conclusion, the launch of CBRE's new ETF represents a compelling opportunity for investors seeking to diversify their portfolios and protect against inflation in a rapidly changing market environment. Alongside real estate investments, the ETF also incorporates hard assets, utilities, and infrastructure, providing a unique opportunity for investors to avoid the volatility of specific sectors like technology that have seen significant growth in recent years. Moreover, the current segment of the real asset universe is well-positioned to drive significant investment growth, making this an attractive proposition for investors seeking strong total returns.
For new businesses, institutional investors' interest in the real asset space indicates the potential for growth and expansion in this market segment. While competition is relatively low, the current fundamentals and valuations offer a promising return on investment. New businesses or entrepreneurs in real estate, infrastructure, or utility sectors could benefit from this development, positioning themselves for future growth, particularly in the context of a quickly evolving technological landscape where the underlying infrastructure and hard assets will be critical to future progress.
