Economist Nouriel Roubini Marks His Entry Into $13T ETF Market With Launch Of Atlas America Fund

Renowned economist Nouriel Roubini along with Atlas Capital Team has marked his entry into the $13 trillion exchange traded funds (ETF) market with the launch of the Atlas America Fund that will trade under the ticker USAF.

The ETF is being touted as a carefully structured asset that will adapt to the complex economic cycles anticipated in the coming years and will offer investors an alternative to the traditional 60/40 portfolio.

The 60/40 portfolio refers to the strategy of investing 60% of the assets in equities and 40% in debt. The strategy, which witnessed a fallout during the COVID-19 pandemic, had been picking up traction. However, in recent times, the investing style took a hit due to a rout in the bond market.

“The Atlas America Fund is designed to provide diversified, resilient asset exposure by combining US Treasury bonds, gold, REITs, and food commodities,” the firm said in a statement.

Roubini further pointed out that as the economic environment becomes increasingly volatile, real assets can provide a resilient solution for preserving value.

"USAF is built to navigate these fluctuations, and with a proactive approach to risk management and growth, it offers investors an effective tool for adapting to the evolving macroeconomic landscape,” he said.

The economist reportedly believes that over the medium term, inflation in the U.S. and advanced economies will gradually inch higher.

“In a world where long rates may go higher, either because of inflation or because large debt and deficit imply higher real rates, that’s a world in which the defensive asset makes you lose money and sometimes makes you lose money more than the risky asset. And you have to find alternatives,” he said, according to a Bloomberg report.

Roubini’s entry into the ETF world comes at a time when market experts and central bank officials continue to remain skeptical about inflation resurfacing.

Moreover, many believe that President-elect Donald Trump’s potential tariff policies and mass deportations could stoke inflation in the coming times.

As a result, safe haven assets like gold are still in the limelight. The SPDR Gold Trust ($GLD) is up over 3% in the last five days.

GLD’s Sentiment Meter and Message Volume as of 11:28 a.m. ET on Nov. 20, 2024 | Source: Stocktwits