In a prolonged bull market environment where pullbacks are a greater concern, investors have looked for ways to mitigate downside exposure in case of sudden risk-off events.
On the upcoming webcast Thursday, Nov. 1, Preparing for Down Market Conditions with Alternative Strategies, Salvatore Bruno, Chief Investment Officer and Managing Director at IndexIQ, and Dan Petersen, Director, Product Management at IndexIQ, will consider smart solutions to build better portfolios through liquid alternative investment strategies.
Specifically, the IQ Hedge Multi-Strategy ETF (NYSEArca: QAI), the largest alternative strategy ETF on the market, 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.
Potential investors should be aware that types of investments like QAI are not meant as growth strategies to generate outsized returns in investment portfolios. In reality, these strategies are doing exactly what they were made for: diminishing volatility. Consequently, in bullish market conditions, the strategies may underperform, but if the markets turn, alts can shine.
Additionally, investors can also select single styles, such as Index IQ Merger Arbitrage ETF (NYSEArca: MNA). MNA would capitalize on arbitrage opportunities through mergers and acquisitions activities.
The webcast will provide an overview of the current bull market and where we are today, alternative strategy tools to hedge a portfolio, how alternative strategies behave during down market conditions, and how financial advisors can incorporate an alternative investment strategy to diversify a portfolio.
Financial advisors who are interested in learning more can register for the Thursday, Nov. 1 webcast here.