While leading managers of private and institutional capital portfolios in the United States typically seek diversification across a range of asset classes which may include stocks, bonds, commodities and real estate; only recently has residential real estate crossed into the realm of popular diversification strategies. The small incremental scale and hands-on management required in residential real estate has prohibited direct investment for many, however indirect investments are making their way into more traditional investor conduits. The Chicago Mercantile Exchange trades futures contracts based on the S&P/Case-Shiller Homer Price Indices, allowing investors simpler access to this massive and relatively stable asset class, a seemingly obvious evolutionary step being that residential and non-profit-held real estate in the United States as an asset class is valued at approximately $24 trillion, or more than twice the value of the S&P 500 market index. This has been the case for all, save a few of the past 50 years and when accurately calculating the asset class’s risk-return tradeoff based on historical volatility and losses, residential real estate is often the superior investment.