DRN - Balancing Your Strategic Asset Allocation With U.S. REITs
Posted by David Wertheim, Senior Client Portfolio Manager on Feb. 8, 2019, in Alternatives
The basis of asset allocation is to combine asset classes that have low performance correlations, with the goal of optimizing the risk-return profile of the overall portfolio. A traditional strategic asset mix includes allocations to both stocks and bonds - but less often do we see a targeted allocation to US real estate investment trusts (REITs) in that mix for individual investor portfolios.
US REITs diversify bond and equity exposures
Historically, US REITs have demonstrated low correlation with both domestic and