What are alternatives ETFs? Hedge funds, commodities, options strategies, private equityâ€”anything that doesn't fit cleanly into the equity or fixed-income buckets has been termed 'alternative' at one point or another. Perhaps the most defining characteristic for alternative investments was that if you were not a 'qualified investor,' most investors couldn't buy them. Today, however, financial innovation has made many of these complex strategies available to a broader audience through ETFs.
With 64 ETFs traded in the U.S. markets, Alternative ETFs ETFs gather total assets under management of $7.55B. The average expense ratio is of 1.17%. Alternative ETFs ETFs can be found in the following asset classes:
- Fixed Income
The largest Alternative ETFs ETF is the VelocityShares Daily Inverse VIX Short-Term ETN XIV with $1.25B in assets. In the last trailing year, the best performing Alternative ETFs ETF was the VMIN at 189.39%. The most-recent ETF launched in the Alternative ETFs space was the JPMorgan Managed Futures Strategy ETF JPMF in 12/05/17.