Last year, ProShares launched the ProShares Morningstar Alternatives Solution ETF (NYSEArca: ALTS), which tracks ProShares alternative ETFs and was designed to enhance risk-adjusted returns when added to a traditional stock and bond portfolio. Specifically, ALTS includes exposure to long-short strategies, hedge fund replication, managed futures, global infrastructure, merger & acquisitions, private equities and Treasury spread.
Investors can also take a more focused approach by targeting specific strategies. For instance, investors can track the individual plays through the ProShares RAFI Long/Short ETF (NYSEArca: RALS), ProShares Hedge Replication ETF (NYSEArca: HDG), ProShares Managed Futures Strategy (NYSEArca: FUTS), ProShares DJ Brookfield Global Infrastructure ETF (NYSEArca: TOLZ), ProShares Merger Arbitrage ETF (NYSEArca: MRGR), ProShares Global listed Private Equity ETF (BATS: PEX) and ProShares 30 Year TIPS/TSY Spread (NYSEArca: RINF).
Moreover, along with its line of inverse and leveraged ETFs, Direxion offers some alternative investment strategies. For example, the Direxion S&P 500 Volatility Response Shares (NYSEArca: VSPY) allocates and rebalances its exposure between equities and Treasury bills based on the recent volatility in the S&P 500, so that higher volatility will force the ETF to hold a greater position in conservative Treasuries to help offset potential losses.
Master limited partnerships have also acted as an alternative investment asset for investors seeking to generate some extra cash on the side. The recently launched Direxion Zacks MLP High Income Shares (NYSEArca: ZMLP) tracks MLPs and the underlying benchmark also employs a quantitative-rules based indexing methodology that includes value, liquidity, short interest and dividend yield, among others. [Direxion’s Jacobs Talks Income Generation, Volatility Reduction]
Advisors interested in attending the upcoming ETF Virtual Summit on Wednesday, January 21 can register here.