Want Income, Diversification and an Inflation Fix? Some Advisors Are Turning to Real Assets
Advisors are increasingly turning to real assets — commodities, real estate and infrastructure — as portfolio diversifiers, income sources and inflation hedges amid a shifting macro regime that has weakened the traditional 60/40 mix since 2020. Commodities (including gold) are highlighted as the easiest access point via ETFs for a modest strategic allocation (typically 5–7%), while public REITs and listed infrastructure offer liquidity and steady cash flows. Large-scale structural demand bolsters the case for the sector: a McKinsey estimate cited $106 trillion of infrastructure investment needed through 2040. Practitioners favor public vehicles to avoid high private fees and illiquidity, though they warn of commodity volatility and private-market constraints. Overall, increased advisor interest could support commodity prices (including XAUUSD) and push portfolio allocations toward real assets, but investors must weigh volatility, liquidity and fee trade-offs.