The global economic slowdown has certainly changed the way investors now choose to allocate their assets. Many play a game of musical chairs, shifting exposure to sectors of the market that can provide them with more favorable returns. In periods of economic uncertainty, there are a number of “safe haven” asset classes that investors flock to when things get rocky. Most choose to limit their exposure to the risk-laden corners of the equities market, and instead focus on more stable industries, fixed income products, and even certain commodities. Although many commodities exhibit extreme volatility, precious metals, particularly gold and silver, have always been an investor safe haven favorite. For those who wish to establish a tactical tilt towards asset classes that generally perform well during times of economic uncertainty, we outline an all ETF portfolio that is designed to maintain relatively low volatility during times of chaos and panic on Wall Street [for … See the full story here →
This story originally appeared on ETFdb.com. ETFs have emerged as popular tools for establishing exposure to a wide variety of asset classes, ranging from U.S. Treasuries to Vietnamese equities. But few corners of the exchange-traded product world have seen more explosive growth in recent years than precious metals, as investors have embraced these vehicles as the most efficient way to access assets that have turned in some monster performance numbers in recent years. The 21 ETFs in the Precious Metals ETFdb Category have more than $83 billion in aggregate assets, representing about 8% of the total ETP industry. That’s a massive total for an asset class that generally accounts for a relatively minor portion of long-term portfolios, reflecting the appeal of the low maintenance and low fees offered by the exchange-traded structure.