What are the three main asset classes?

Historically, the three main asset classes have been equities (stocks), fixed income (bonds), and cash equivalent or money market instruments. Currently, most investment professionals include real estate, commodities, futures, other financial derivatives, and even cryptocurrencies in the asset class mix.

What are commodities?

Commodities belong to their own asset class next to stocks, bonds, cryptocurrencies, and real estate. They are further divided into soft and hard commodities. This guide will describe what commodities are, provide examples of the most common types, and explain what causes their prices to fluctuate.

How have commodities evolved as an asset class?

Commodities have also evolved as an asset class since the 1990s, with the development of commodity futures indexes and subsequently, investment vehicles that benchmark against these indices.