To capture the merger-arbitrage strategy, the Index IQ Merger Arbitrage ETF (NYSEArca: MNA), Credit Suisse Merger Arbitrage Index ETN (NYSEArca: CSMA) and ProShares Merger Arbitrage ETF (NYSEArca: MRGR) provide investors with a diversified approach to a group of takeover targets. The ETFs employ a type of alternative, “directional hedge fund strategy” called merger arbitrage. Specifically, the funds capture the spread or difference between a stock’s trading price before a deal is announced and its eventual takeover price. [ETFs to Capture the Rise in M&A Activity]

Additionally, the recently launched IQ Leaders GTAA Tracker ETF (NYSEArca: QGTA) and the AdvisorShares Morgan Creek Global Tactical ETF (NYSEArca: GTAA) both follow tactical asset allocation strategies that adapt to changes in the market environment. GTAA takes a discretionary macro approach in its global tactical portfolio.

Investors can also take a look at ETFs that track a basket of alternative investment strategies. For instance, the newer PowerShares Multi-Strategy Alternative Portfolio (NasdaqGM: LALT), ProShares Morningstar Alternatives Solution ETF (NYSEArca: ALTS) and IQ Hedge Multi-Strategy ETF (NYSEArca: QAI). Specifically, ALTS employs long-short strategies, hedge fund replication, managed futures, global infrastructure, merger & acquisitions, private equities and Treasury spread investments. The actively managed LALT holds a combination of equities, along with financial future contracts, forward currency contracts and other securities. QIA provides a diversified mix of alternative strategies, including multiple hedge fund investment styles, such as long/short equity, global macro, market neutral, event-driven, fixed income arbitrage and emerging markets. [Alternative Investment ETFs Are Increasingly Popular]

For more information on alternative strategies, visit our alternatives category.

Max Chen contributed to this article.

CORRECTION: Update on AdvisorShares Morgan Creek Global Tactical ETF.