Thanks for the giving

In this monthly edition of Liquid Real Assets (LRA) Market Update for October 2025, John Vojticek and team take a look at how public markets viewed listed real assets (real estate, infrastructure, natural resources and commodities).

Click below for the full report, including our Market Commentary, Why it Matters and:

Macro Dive:

• U.S. Data
• Canadian Indicators

Real Assets, Real Insights:

• The Winner Is?
• Overload
• Let’s Get Critical

Market Index Returns

Month to date since September 30, 2025 as of October 31, 2025

Index definitions: Global Real Estate = FTSE EPRA/NAREIT Developed Index; Global Infrastructure = Dow Jones Brookfield Global Infrastructure Index; Natural Resource Equities = S&P Global Natural Resources Index; Commodity Futures = Bloomberg Commodity Index; TIPS = Barclays US TIPS Index; Global Equities = MSCI World Index; Real Assets Index = 30% FTSE EPRA/NAREIT Developed Index, 30% Dow Jones Brookfield Global Infrastructure Index; 15% S&P Global Natural Resources Index; 15% Bloomberg Commodity Index, 10% Barclays TIPS Index. Source: Bloomberg, DWS. Past performance is not indicative of future results. It is not possible to invest directly in an index.

Market Commentary

Well, thanks, but no thanks. The U.S. government hasn’t been giving, or rather disbursing, nutritional benefit subsidies to states despite court orders. This hasn’t shown in the data, yet, but could impact consumer spending and business income for the millions of Americans awaiting help. Markets have taken a breather as they digest third quarter earnings and await the revenue payoff from AI-related capital expenditures. This week, the United States Supreme Court began hearings regarding President Trump’s power to impose unilateral tariffs under the International Economic Emergency Powers Act, known as IEEPA. During initial arguments, several justices expressed skepticism and questioned whether this was an implicit tax and therefore relates to the power of the purse — which rests with Congress. Although Trump has other tools to impose tariffs, our view is that a rebuffing of his use of IEEPA would likely put downward pressure on inflation, increasing the likelihood of further rates cuts. (1)

For the week ending November 5th, Real Assets outperformed Global Equities on a relative basis. Commodity Futures was the only segment to generate positive performance, while Global Infrastructure Securities and Global Real Estate outperformed despite negative returns. Natural Resource Equities and U.S. TIPS (Treasury Inflation Protected Securities) underperformed the Real Assets Index. Within global equities, the Consumer Discretionary, Health Care, and Financials sectors outperformed, while the Technology, Communications, and Materials sectors underperformed. Across other market indicators, the VIX, a measure of 30-day expected stock market volatility, rose 6.4% to end the month at 18. Breakeven yields, a measure of implied inflation, rose 3 bps in the 5-year segment and 1 bp in the 10-year segment. Gold prices ended the period 1.3% higher at $3,979/ounce. Oil prices fell 1.5% to end the period at $59/barrel and the U.S. dollar strengthened 1% against major trading partners. Credit spreads widened 4 bps for investment grade credits and 15 bps for the high yield space. (1)

For the month of October, Global Equities outpaced Real Assets on the strength of Technology, Utilities, and Health Care stocks. While the overall MSCI World equity index hit fresh all-time highs, the Real Estate, Consumer Staples, Financials, and Materials sectors lagged. Within Real Assets, Commodity Futures, U.S. TIPS (Treasury Inflation Protected Securities), and Natural Resource Equities outperformed, while Global Infrastructure and Global Real Estate Securities underperformed. Across other market indicators, the VIX, a measure of 30-day expected stock market volatility, rose 7% to end the month at 17.4. Breakeven yields, a measure of implied inflation, fell 4bps in the 5-year segment and 5 bps in the 10-year segment. Gold prices, despite taking a mid-month breather, continued their strong run by ending the month 3.7% higher at $3,859/ounce. This year, the bid for safe-haven* assets and the ongoing debasement trade have added support for gold and silver prices. Gold has the advantage over silver of being an increasingly popular reserve asset for central banks, while silver is primarily a consumed industrial metal. Oil prices fell 1.6% to end the period at $61/barrel as the supply overhang loomed with OPEC increasing production quotas. The U.S. dollar strengthened 2% against major trading partners in the month. Credit spreads widened 5bps for investment grade credits and 15bps for the high yield space. (1)

In the full report:

Why it matters: While we have received inflation data in the U.S., we still await federal employment data, which is a key focus of the Fed and should drive forward rate expectations. This week we will review the latest data from the U.S., Canada, and Europe.

Real Assets, Real Insights: This week we look at potential implications of Mamdani’s win in NYC, data center requests in the UK, and the critical mineral market for the U.S.

Click here to read the full report.

This report is for professional/institutional investors only. To access, please validate accordingly and select "Global English" site for a smoother journey.

(1) Source: Bloomberg Finance LP, as of November 6, 2025

*Financial safe havens are investments or assets that are expected to retain or increase in value during times of market turbulence.

Any mentions of specific properties or securities are for illustrative purposes only and should not be considered a recommendation. Diversification neither assures a profit nor guarantees against loss. Past performance is not a guarantee of future results. The opinions and forecasts expressed are those of the authors and may not come to pass. Forecasts are based on assumptions, estimates, views and hypothetical models or analyses, which might prove inaccurate or incorrect.  Forecasts are not a reliable indicator of future returns. All investments involve risks, including potential loss of principal. Index returns do not reflect fees or expenses, and it is not possible to invest directly in an index. Companies involved in artificial intelligence and big data face intense competition, may have limited product lines, markets, financial resources and personnel. Artificial intelligence and big data companies are also subject to risks of new technologies and are heavily dependent on patents and intellectual property rights and the products of these companies may face obsolescence due to rapid technological developments. 

Glossary

One basis point (bps) equals 1/100 of a percentage point.

Bloomberg Commodity Index (BCOM) traces 23 commodities and reflects commodity futures price movements.

Bloomberg U.S. Treasury Inflation Notes Total Return Index includes all publicly-traded U.S. Treasury inflation-protected securities that have at least one year remaining to maturity, are rated investment grade and have $250 million or more of outstanding face value.

Capital expenditure (Capex) are funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment.

Credit spread is the difference between the yield (return) of two different debt instruments with the same maturity but different credit ratings.

Debasement trade refers to an investment strategy where investors move away from sovereign debt and fiat currencies to assets like gold, silver, or Bitcoin.

The Dow Jones Brookfield Global Infrastructure Index measures the performance of pure-play infrastructure companies domiciled globally.

FTSE EPRA/NAREIT Developed Index represents general trends in global real estate equities.

Earnings refer to a company’s net income or profit over a specific period, typically reported quarterly or annually. They represent the amount a company makes after subtracting expenses, taxes, and costs from its total revenue. (Bloomberg)

The U.S. Federal Reserve, often referred to as "the Fed," is the central bank of the United States.

High-yield bonds are issued by below-investment-grade-rated issuers and usually offer a relatively high yield.

Inflation is the rate at which the general level of prices for goods and services is rising and, subsequently, purchasing power is falling.

Inflation breakeven yield (or breakeven inflation rate) is the difference in yield between a nominal Treasury bond and a Treasury Inflation-

International Economic Emergency Powers Act (IEEPA) is a U.S. federal law enacted in 1977 that grants the President authority to regulate international commerce after declaring a national emergency in response to any unusual and extraordinary threat to the United States that originates outside the country.

Protected Security (TIPS) of the same maturity. This spread reflects the market’s expectation of future inflation over the life of the bond. (Bloomberg)  

Investment grade (IG) refers to a credit rating from a rating agency that indicates that a bond has a relatively low risk of default.

The Nasdaq Composite Index is an equity index which contains all common stocks listed on the NASDAQ exchange. 

The MSCI World Index tracks the performance of mid- and large-cap stocks in 23 developed countries around the world.

A nominal value in economics is not adjusted for inflation; a real value is.

The Organization of the Petroleum Exporting Countries (OPEC) is an international organization with the mandate to ”coordinate and unify the petroleum policies“ of its meanwhile 12 members.

A Real Estate Investment Trust (REIT) is a company that owns and, in most cases, operates income-producing real estate. REITs sell like a stock on the major exchanges and invest in real estate directly, either through properties or mortgages.

The S&P 500 is an index that includes 500 leading U.S. companies capturing approximately 80% coverage of available U.S. market capitalization.

S&P Global Natural Resources Index includes 90 of the largest publicly-traded companies in natural resources and commodities businesses that meet specific investability requirements, offering investors diversified and investable equity exposure across 3 primary commodity-related sectors: agribusiness, energy and metals/mining.

The spread is the difference between the quoted rates of return on two different investments, usually of different credit quality.

A tariff is a tax imposed by one country on the goods and services imported from another country.

Treasuries are fixed-interest U.S. government debt securities with different maturities: Treasury bills (1 year maximum), Treasury notes (2 to 10 years), Treasury bonds (20 to 30 years) and Treasury Inflation Protected Securities (TIPS) (5, 10 and 30 years).

Treasury Inflation-Protected securities (TIPS) are a form of U.S. Treasury bonds designed to protect investors against inflation. These bonds are indexed to inflation and pay investors a fixed interest rate as the bond's par value adjusts with the inflation rate.

The VIX (CBOE Volatility Index) is a trademarked ticker symbol for the Chicago Board Options Exchange Market Volatility Index. It is a popular measure of the volatility of the S&P 500 as implied in the short-term option prices on the index.

Yield is the income return on an investment referring to the interest or dividends received from a security and is usually expressed annually as a percentage based on the investment's cost, its current market value or its face value.

A yield curve shows the annualized yields of fixed-income securities across different contract periods as a curve. When it is inverted, bonds with longer maturities have lower yields than those with shorter maturities.

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