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Date: September 5, 2017
Category: Alternative Investments

Alternatives and Your Portfolio: The Search for Income

Alternative investment income

Plenty of investors put investment income at the top of the list of their investment goals. But let’s face it, these days, income can be hard to find.

If you are an investor looking for income from the stock market, you are likely to be disappointed—after a long period of rising stock prices, the S&P 500 Index currently has a dividend yield of less than 2 percent.1 And if you are hoping to generate income from bonds, relatively low interest rates have held down fixed-interest yields.

However, there is an asset class that may help fill the income gap: alternative investments. Alternatives are a broad category that includes direct real estate, energy, corporate credit, private equity, and commodities.

Many types of alternative assets seek to deliver income. For example, real estate investments deliver income from rents. That income may even offer a hedge against inflation, because a lot of real estate assets have short-duration leases that can be renegotiated when interest rates and inflation rise. Corporate credit investments deliver income from interest payments, and if the underlying loans pay floating-rate interest, this income may also offer some protection against inflation. Finally, private equity funds may deliver income from dividends paid by the companies they invest in.

This means that an allocation to alternatives may help boost a portfolio’s income-generating potential. The chart below shows the relative income yields of a traditional 60/40 portfolio alongside one that includes alternative assets.

Income portfolio with alternative investments* Past performance is no guarantee of future results.

The Bottom Line:

If investment income is your objective, alternatives are worth considering.

Resource is the marketing name for Resource Real Estate, LLC, Resource Alternative Advisor, LLC, and their affiliates. Resource may distribute certain products through Resource Securities LLC, a wholly owned broker/dealer, Member FINRA/SIPC


The information contained herein does not constitute an offer to sell or a solicitation to purchase securities. Such offers or solicitations can only be made by means of a prospectus. Prior to making any investment decision, you should read the applicable prospectus carefully and consider the risks, charges, expenses and other important information described therein. The value of your investments may decline, and you could lose some or all of your investment. To obtain a prospectus containing this and other information, please call (866) 773-4120 or download the file from Read the prospectus carefully before you invest.


Resource has an interval fund that is distributed by ALPS Distributors, Inc. (ALPS Distributors, Inc. 1290 Broadway, Suite 1100, Denver, CO 80203). Resource Alternative Advisor, LLC, Resource Real Estate, LLC, their affiliates, and ALPS Distributors, Inc. are not affiliated.


Performance data quoted represents past performance. Past performance is no guarantee of future results and investment returns and principal value of the Fund will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data quoted above. For performance information current to the most recent month-end, please call toll-free (866) 773-4120 or visit


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