Asset Classes – the Investing Building Blocks
Depending on whom you ask, the list of asset classes will be different. For example, U.S. stocks and international stocks might or might not be considered to belong to the same asset class (stocks).
Major Asset Classes
The major classes are: cash and cash equivalents, stocks, bonds, inflation-protected securities, real estate, commodities and currencies.
Note that we could put inflation-protected securities into the bonds asset class. However, since their usage is different enough, we prefer to put them in a class of its own.
These articles cover the major asset classes in more detail.
Exchange Traded Funds (ETFs)
Regarding the asset classes, one can make direct investments, use derivatives, or invest in funds, but most people are better off using ETFs.
Click the button below to learn more about our free educational program.