Alternative assets have other advantages in addition to income-generating potential.
“Alternatives are generally known for lower volatility compared to equities. ALTY’s index methodology seeks to further reduce volatility through its selection and weighting of components. Alternative income is often generated from sources with low correlation to equities and traditional fixed income, such as real assets, private equity, and derivative strategies,” according to Global X.
However, those advantages come at a cost. As ALTY holds multiple asset classes across multiple funds, the new ETF’s expense ratio is 3.03%, which is high by the standards of most actively managed mutual funds, let alone passively managed ETFs.
ALTY pays its dividend on a monthly basis.
Charts Courtesy: Global X