Looking at LALT, the fund includes long and short positions in G-10 currency forwards, stocks and VIX index futures, along with a significant long position in interest rate futures.
The actively managed PowerShares S&P 500 Downside Hedged Portfolio (NYSEArca: PHDG) tries to generate positive total returns in a rising or falling market. PHDG can act as an equity substitute to help provide uncorrelated returns to broad equity markets.
Specifically, the ETF includes a blend of equity positions and CBOE Volatility Index Futures to hedge market risks. Potential investors, though, should be aware that while the fund can help hedge against market turns, PHDG may lag the equities market in bullish conditions.
For more information on active strategies, visit our actively managed ETFs category.
Financial advisors who are interested in learning more about alternative investment strategies can register for the Wednesday, August 13 webcast here.