LALT 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. The new ETF also allocates about 45.4% of its weight to U.S. equities and almost 46% to equity index futures. Overall, LALT is home to 110 holdings.
Because LALT’s underlying index looks to generate returns from multiple sources, the ETF can serve as a portfolio diversifier in addition to being a risk reduction instrument.
PowerShares Multi-Strategy Alternative Portfolio
Table Courtesy: PowerShares
ETF Trends editorial team contributed to this post.