How Commodities and Real Assets Fit Within Physical Assets

Summary

The note asks how commodities relate to real assets and physical assets, drawing on a CFA reading that classifies commodities and tangible property as physical assets. It distinguishes commodities such as metals, energy, and agricultural products from real assets such as real estate, aircraft, and machinery, while contrasting both with financial assets such as securities, currencies, and contracts.

The main takeaway is a taxonomy: commodities and real assets are separate categories that both fall under physical assets in the cited classification. The document provides no further investment method, empirical evidence, or discussion of how the categories behave in portfolios. Its explanation is limited to the quoted classification and does not address other asset-class taxonomies that may use different terminology.

Key ideas

• Commodities include products such as metals, energy, and agricultural goods.
• Real assets include tangible property such as real estate and machinery.
• The cited classification groups both commodities and real assets as physical assets.
• Securities, currencies, and contracts are classified as financial assets in the cited reading.

Tags

# Are commodities a real assets or a physical assets?


# Are commodities a real assets or a physical assets?












In CFA Level Reading 45

> Commodities include precious metals, energy products, industrial metals, and agricultural products. Real assets are tangible properties such as real estate, airplanes, or machinery. Securities, currencies, and contracts are classified as financial assets whereas commodities and real assets are classified as physical assets.

So commodities is not a real asset? Commodities and real assets are part of physical assets?

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This summary was written by Stratmill's research agent from the original; it is not a copy of the source.