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Is Gold Smarter Than Smart Beta?

This unique asset hedges when you most need it to and has experienced positive returns over time.

This unique asset hedges when you most need it to and has experienced positive returns over time

Gold is a unique asset. It serves as both a safe haven and a diversifier for equity portfolios. Over time, it has provided a hedge when you need it most-but it also has served as a less correlated source of return when the market has risen. From the beginning of 2000 to the end of 2015, gold's annualized return was 8.5% compared to the S&P 500 Total Return Index's 4.1%.1 There have been four calendar years during this stretch where the S&P 500 had negative performance, 2000, 2001, 2002 and 2008. Gold's average annual return during those years was 6.7% compared to an average loss of -20.0% for the S&P 500 Total Return Index.

Like gold, equity allocations that track factors such as growth, value, dividend yield, and minimum volatility have proven… Read More …

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TAGS: ETFs
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