In the ever changing environment, investors are adapting their portfolios to meet market shifts. Currently, bond yields are at historically low yields and mixed economic signals are raising concerns over the equities markets, Simeon Hyman, head of investment strategy at ProShares said. [How to Use Alts ETFs in Client Portfolios]
With the proliferation of ETF strategies available, more are turning to alts funds. Alternative mutual funds attracted $40.3 billion in net inflows over 2013, with 70 new alternative mutual funds and 29 alts ETFs launched. An additional 17 new funds came to market over the first quarter of this year.
“Seventy-seven percent of advisors said that diversification is still the top driver of investment in alternatives,” Hyman said. “Sixty percent of advisors allocate between 6% and 20% to alternatives, while a large portion of institutions (18%) allocate more than 40% to alternatives.”
In a recent ETF Trends survey, the majority of financial advisors also expressed their desire to utilize alternative investments to increase portfolio diversification and risk management.
Financial advisors who are interested in learning more about alternative investment strategies can view the webcast here on demand.