11 months ago • 1 min
Although 2022 was a tough year for traditional assets, at least one asset was still sparkling: investment-grade wine (light blue line) saw a 13.6% gain. And if you’re thinking that was just a flash in the pan, think again – it’s up 44.6% over the past five years. Intoxicating. But it makes sense: just like there’s a bottle that goes with every meal, wine has a way of pairing itself well to all kinds of market environments – even the really poor ones. Finding investments that don’t move in sync with traditional assets is key to creating a robust all-weather investment portfolio. Fine wine could be one of them: it tends to increase in value as it ages because of the limited supply produced each year which has to quench a growing global thirst.
Unfortunately, there is no wine-specific ETF to invest in, but there are some other good options. The Wine Investment Fund lets you invest specifically in Bordeaux wines. And there’s the Vini Sileo Vineyard Fund, if you’d prefer partly owning vineyards in France, Portugal, and Italy. Or you could use a wine-investing platform like VinoVest, which sends you a questionnaire that allows it to build a wine portfolio tailored for you, then stores and insures your wine for an annual fee that starts at 2.85%. Lastly, you could always DIY and buy wines listed in the Liv-ex Fine Wine 1000 index. But be aware, you’ll have to organize the correct storage and insurance, and eventually find a buyer at an auction. So, don’t pour one out: it may be time to start investing in the precious liquid instead.
Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.
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