For example, investors can take a look at two recently launched alts strategies, the ProShares Morningstar Alternatives Solution ETF (NYSEArca: ALTS) and PowerShares Multi-Strategy Alternative Portfolio (NasdaqGM: LALT).
ALTS acts like a sort of fund-of-funds, tracking a Morningstar index comprised of ProShares ETFs. The ETF includes exposure to long-short strategies, hedge fund replication, managed futures, global infrastructure, merger & acquisitions, private equities and Treasury spread. [How an Alternative ETF Strategy Fits in Investment Portfolios]
The actively managed LALT tries to provide positive total return with a low correlation to broad securities and can be used as a fixed-income substitute. LALT holds a combination of equities, along with financial future contracts, forward currency contracts and other securities. 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. [Diversify with Liquid Alternative ETFs]
For more information on ETFs, visit our ETF 101 category.
Max Chen contributed to this article.