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Real assets seen as diversification hedge amid stock concentration
An SS&C ALPS Advisors webcast argued that rising prices and inflation pressures can erode the value of a traditional 60% stocks, 40% bonds mix.
ETF Trends highlighted concerns that megacap technology has increased concentration in the U.S. stock market, potentially leaving portfolios less diversified than investors may think.
The outlet also pointed to inflation risk, saying rising prices can erode purchasing power while bonds may not keep pace, making the traditional 60% equities and 40% bonds allocation harder to rely on as a one size fits all approach.
According to ETF Trends, a recent SS&C ALPS Advisors webcast on building resilient portfolios with real assets, moderated by Roxanna Islam of TMX VettaFi with experts Carl Zeller and Richard Baker, framed real assets as a way to spread risk beyond stocks and bonds.
ETF Trends said the discussion connected growing demand for AI infrastructure, modern electricity grids, and local manufacturing to a potentially larger role for physical assets in the economy, while noting real assets still carry risks.