| Asset class | 4Q23 return (%) |
YTD return (%) |
YoY return (%) |
Yield (%) |
|---|---|---|---|---|
| Commodities | -4.63 | -7.91 | -7.91 | – |
| Energy commodities | -18.15 | -21.64 | -21.64 | – |
| Agricultural commodities | -0.30 | -4.44 | -4.44 | – |
| Precious metals commodities | 10.43 | 9.64 | 9.64 | – |
| Base metals commodities | 0.15 | -9.15 | -9.15 | – |
| Global REITs | 15.59 | 10.85 | 10.85 | 4.09 |
| U.S. REITs | 17.98 | 11.36 | 11.36 | 3.95 |
| International REITs | 15.05 | 7.06 | 7.06 | 4.29 |
Definitions
Index definitions
Bloomberg Commodity (BCOM) indexes are a family of financial benchmarks designed to provide liquid and diversified exposure to physical commodities via futures contracts. The index currently represents 20 commodities which are weighted to account for economic significance and market liquidity and 22 exchange-traded futures contracts. The index takes exposure to an equally weighted basket of Underlying indexes (subindexes). The Underlying indexes includes the following: BCOM Energy, BCOM Agriculture, BCOM Precious Metals, and BCOM Industrial Metals.FTSE NAREIT All Equity REITs Index, a subset of the All REITs Index, is designed to track the performance of REITs representing equity interests in (as opposed to mortgages on) properties. It represents all tax-qualified REITs with more than 50 percent of total assets in qualifying real estate assets, other than mortgages secured by real property that also meet minimum size and liquidity criteria.
FTSE EPRA/NAREIT Developed Index is designed to track the performance of listed real-estate companies and REITs in developed countries worldwide.
FTSE EPRA/NAREIT Developed Index ex-U.S. REITs Index is designed to track the performance of listed real estate companies in developed countries worldwide other than the United States.
Sources: Bloomberg and Wells Fargo Investment Institute, as of December 31, 2023. YTD = year to date. YOY = year over year. REIT = real estate investment trust. For illustrative purposes only. Indexes in order represented by Bloomberg Commodity Index, Bloomberg Energy Subindex, Bloomberg Agriculture Subindex, Bloomberg Precious Metals Subindex, Bloomberg Industrial Metals Subindex, FTSE All Equity REITs Index, FTSE EPRA/NAREIT Developed Index, FTSE EPRA NAREIT Developed ex-U.S. REITs Index. Yields represent past performance and fluctuate with market conditions. Current yields may be higher or lower than those quoted above. Past performance is no guarantee of future results. An index is unmanaged and not available for direct investment. Investing in commodities and REITs are not appropriate for all investors. The commodities markets are considered speculative, carry substantial risks, and have experienced periods of extreme volatility. Investments in the energy sector are subject to the adverse economic events that occur within that industry. Investing in precious and base metals carries additional risks and may subject an investment to greater share price volatility. Base metals cannot be held physically and are not easily converted to cash. Real estate has special risks, including the possible illiquidity of the underlying properties, credit risk, interest rate fluctuations, and the impact of varied economic conditions. Foreign investing involves risks typically not associated with investing domestically, including currency, transaction, volatility and political and regulatory uncertainty. These risks are heightened in emerging markets. See “Index Definitions and Asset Class Risk Disclosures” link above for index definitions.
Key Takeaways
- Commodity prices fell in 2023, as energy and base metals prices fell on growing concerns over demand growth.
- Precious metal prices held up better over the past year as concerns surrounding economic growth and the volatile market environment provided support for gold prices.