Invesco’s (NYSE: IVZ) PowerShares, the fourth-largest U.S. ETF sponsor, today introduced the PowerShares Multi-Strategy Alternative Portfolio (NasdaqGM: LALT).
The actively managed LALT is a first-of-its-kind ETF designed to mute portfolio volatility while boosting risk-adjusted returns. LALT uses a long-short strategy.
“The PowerShares LALT strategy is designed to help investors reach their portfolio objectives by reducing the volatility of returns and mitigating the risk of drawdowns. To accomplish this, the Fund employs a long-short strategy that seeks to provide a positive total return with low correlation to the broader securities markets through a cost efficient vehicle,” said PowerShares in a statement.
LALT tracks a proprietary benchmark developed by Morgan Stanley (NYSE: MS) that is comprised of quantitative, rules-based strategies.
The benchmark seeks to capture non-tradition risk premia across multiple asset classes, including equities, bonds, currencies and volatility instruments.