5 Underrated Assets to Watch This Year

While mainstream investors remain focused on equities and real estate, several lesser-known asset classes are quietly outperforming. Here are five that deserve more attention in 2025.

First on the list is carbon credits. With increasing environmental regulations and corporate ESG goals, demand for verified emissions reductions has soared, creating a new speculative market.

Second is water rights and infrastructure. Scarcity, population growth, and infrastructure upgrades are driving up valuations of water-related assets across North America and Australia.

Third, we see digital collectibles—not in the NFT speculative bubble sense, but in curated, utility-backed tokens that are gaining institutional interest.

Fourth, farmland continues to provide inflation-hedged returns. Institutional investors and sovereign funds are buying up arable land, especially in politically stable countries.

Lastly, catastrophe bonds (Cat Bonds) offer high yield potential while being largely uncorrelated with equity markets. They are becoming a favorite among hedge funds seeking alternative returns.