ETF Trends
ETF Trends

After considering the risks in an extended bull market environment in both traditional equities and fixed-income assets, more exchange traded fund investors are hunting for alternative strategies to hedge against any potential fallout.

On the upcoming webcast, An Alternative to Diversify ETF Portfolios, Yasmin Dahya, Head of Americas Beta Specialist for J.P. Morgan Asset Management, David Lebovitz, Global Market Strategist for J.P. Morgan Asset Management, and John Lunt, President of Lunt Capital Management, will explore the current market environment, consider catalysts for volatility ahead and look to alternative investment strategies to hedge risk-off events or diversify a portfolio.

For example, the JPMorgan Diversified Alternatives ETF (NYSEArca: JPHF), J.P. Morgan’s first actively managed ETF to hit the market, combines various hedge fund-esque, alternative investment strategies in an easy-to-use ETF wrapper. Specifically, JPHF will include equity long/short, event driven and global macro based strategies.

The equity long/short strategy involves simultaneously taking equities that are attractive based on relevant return factors and selling equities that are unattractive based on relevant return factors. The long/short strategy will try to produce alpha through exploiting pricing inefficiencies between equity securities through long and short positions.

The event driven strategy will try to profit from companies on the basis that a specific event or catalyst will affect future pricing. For example, merger arbitrage strategies try to capitalize on price discrepancies and returns in corporate transactions.

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