By investing in diverse asset classes, which are to some extent uncorrelated to conventional asset classes, the newly launched ETF can be an answer to the prospective volatility in the market and protect your portfolio.
In terms of competition, though the space is not crowded with other funds, it is swelling by the day. Extreme diversification and the fund-of-fund approach should help this newly launched product to stave off competition. However, individual players in the long/short and hedge fund space shouldn’t be able to pose as threats.
Products like AdvisorShares’ Accuvest Global Long Short ETF (AGLS), IQ Hedge Multi-Strategy Tracker (QAI) or PowerShares Multi-Strategy Alternative Portfolio (LALT) could give ALTS a run for money, but not to a great extent. Some other funds like WisdomTree Managed Futures Strategy Fund(WDTI) and SPDR Multi-Asset Real Return ETF (RLY) also deserve mention in the multi-strategy space, which is clearly filling up in today’s uncertain market.
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