Historically, investment grade wines have consistently provided high returns at lower risk when compared to stock indices and many other asset classes.
From January 2002 to April 2013 the Liv-ex 100 has had a 0.25 correlation to the FTSE, 0.28 to Oil and 0.06 to Gold.
VOLATILITY AND CORRELATION
The Liv-ex Fine Wine 100 Index is considered to be the industry standard, composed of the 100 most sought-after investable wines. In the last ten years, the Liv-ex 100 has grown 195%, a CAGR of 9.5%.
The Liv-ex 100 Index has been less volatile than the FTSE, Dow Jones, Crude Oil and Gold since 2002.
The market’s consistent growth and low correlation to most other asset classes makes wine highly attractive in terms of a risk vs. reward profile.