The Latest News:

  • More advisors and investors are turning to alternative investments to access asset with a low correlation to traditional stocks and bonds as a way to diversify an investment portfolio.
  • “These investments aren’t the right choice for every person and as with any class of investments, there are certainly bad alternative products out there,” Klaas Baks, executive director of the center for alternative investments and an associate professor of finance at Emory University’s Goizueta Business School, said in a Wall Street Journal article. “But when used correctly, alternatives can and do provide individuals with some of the same benefits that have made them attractive to institutions—specifically, diversification, a wider set of investment opportunities and access to leverage.”
  • Nadia Papagiannis, director of alternative investment strategy for global third party distribution at Goldman Sachs Asset Management, pointed out that investment portfolios with 20% allocated to alternative investments is “pretty standard,” reports Daria Mercado for InvestmentNews. [Alternative ETF Allocations: The Goldilocks Range]

ProSharse RAFI Long/Short ETF

For past stories in this series, visit our ETF Spotlight category.

Max Chen contributed to this article.

Financial advisors interested in attending the annual alternatives virtual summit on on May 21st can register at Alternatives & Income Virtual Summit.