What Are Asset Classes? More Than Just Stocks and Bonds
What Is an Asset Class?
An asset class is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. Asset classes are thus made up of instruments that often behave similarly to one another in the marketplace.
Examples of common asset classes include equities, fixed income, commodities, and real estate.
Key Takeaways
- An asset class is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations.
- Equities (e.g., stocks), fixed income (e.g., bonds), cash and cash equivalents, real estate, commodities, and currencies are common examples of asset classes.
- There is usually very little correlation and sometimes a negative…
