“Since the Benchmark’s underlying strategies draw returns from different risk sources, combining the strategies may result in further diversification and risk reduction,” said PowerShares in the statement.
LALT currently has 95 holdings, including a 44.6% allocation to U.S. equities. The fund, which charges 0.95% per year, also long and short positions in G-10 currency forwards as well VIX index futures and a short position in equity index futures, according to PowerShares data.
Other new ETFs introduced by PowerShares this year include the PowerShares NYSE Century Portfolio (NYSEArca: NYCC), PowerShares International BuyBack Achievers Portfolio (NasdaqGM: IPKW) and the most recent addition, the PowerShares Variable Rate Preferred Portfolio Fund (NYSEArca: VRP). [New Variable Rate ETF Debuts]
ETF Trends editorial team contributed to this post.