FlexShares Real Assets Allocation Index Fund (ASET)

Investors were net purchasers of money market funds while being net redeemers of equity funds, tax-exempt fixed income funds, and taxable bond funds for the week. For the week, the average equity fund (including ETFs) witnessed market declines of 1.01%, while its taxable fixed income counterpart declined 0.23%.

Keeping inflation in check continues to be the prime focus of the U.S. Federal Reserve. The capital markets are already expecting a 50-basis point rate hike at the next Fed meeting.

The FlexShares Real Assets Allocation Index Fund (ASET) is a compelling offering for investors seeking a packaged global real asset strategy. Real assets have historically responded favorably in rising inflationary or expanding economic cycles, making them useful to investors looking to reduce the effect of inflation on their long-term returns, according to FlexShares.

Real assets can provide an alternative source of income as well as portfolio diversification, which is necessary amid the volatility that investors have been experiencing as of late in the equities market. In a world of rising global inflation, getting more yield has proven to be a challenge.

Rising inflation calls for a tailored portfolio that's bespoke for the current market landscape. ETF provider FlexShares has a pair of funds to suit the challenges investors currently face.

More institutional investors are increasingly using exchange traded funds (ETFs) to pad portfolios with real asset exposure amid the market volatility. An Institutional Investor survey of 766 respondents that included asset allocators notes the shift to ETFs.

More volatility is ahead in 2022, making alternative asset exposure a must. This includes getting real asset exposure that is uncorrelated to the equities market.

The traditional 60-40 stock-bond split won't cut it in a world where the threat of inflation and slow growth provides ample headwinds for portfolio gains, which makes a multi-asset strategy necessary. Ultimately, getting multi-asset exposure allows investors to spread their capital to avoid concentration risk and obtain diversification.

Inflation reached a three-decade high during the month of October, but the good news is there's a plethora of ways to combat inflation, such as real assets. Initial, more optimistic forecasts of inflation labeled it as transitory, but that narrative is starting to change.

In times of inflation, it helps to add real assets, and exchange traded fund (ETF) investors can do this all with one fund: the FlexShares Real Assets Allocation Index Fund (ASET). A study by global investment firm BlackRock showed that real assets can outperform stocks and bonds in an inflationary environment.

As inflationary pressure continues to push upward, one way to counteract the rise is through real asset ETFs like the FlexShares Real Assets Allocation Index Fund (ASET). As opposed to holding multiple assets like precious metals or commodities like oil, ASET can give investors exposure to it all through one position.

Traditionally, an inflationary scenario might compel investors to embrace Treasury inflation protection securities (TIPS) and other assets with a reputation for damping rising consumer prices. This time around, advisors and investors may want to consider an equity-based approach with real assets.

Amid low interest rates and a weak dollar, the market is ripe for real asset ETF strategies. Investors looking for broad-based exposure to real assets such as energy, infrastructure, and real estate can check all of those boxes and then some with the FlexShares Real Asset Allocation Index Fund (NasdaqGM: ASET).

Ample economic research has shown that excessive debt, above a certain threshold of GDP, begins to drag down economic growth.