Alternative asset classes through IBKR

[twobraids]

Hi all,

With P/E ratios at all time high, does anyone know of good alternatives to invest in Private Equity (is it better to go for PE stocks or are there funds of funds?) or Real Estate (e.g. REITs) that can be found on IBKR?

I would allocate 10%/15% of my portfolio to the above, the reast would stay in a All World ETF (e.g. VT)

Thank you

 

[melinda2022]

@twobraids There are plenty of REITs. I personally have a small allocation to AVRE.

If you are concerned about P/E ratios of megacaps, you may want to factor-load small-cap value (like AVUV and AVDV), but this has not been a profitable bet in the past years.

You may note all those funds are from Avantis, they are slightly more expensive than iShares or Vanguard funds but they are all my go-to when I want some sort of tilt.

I think public funds for PE kind of defeat the purpose, but I am not an expert in that area.

You may also want to add something like gold (GLDM), or commodities. Crypto you won't be able to trade in IBKR from Switzerland.

 

[tobiahjude99]

@twobraids If you are not rich and have good connections to private equity firms, pe is terrible. The cost of pe is horrendous and after cost you are normally worse off then with stockmarket investments.

If p/e is concerning to you, value etfs might be interesting to you.

For example Avantis all markets value AVGV could be a nice add to your portfolio. Current average p/e of 10.8