What are alternatives ETFs? Hedge funds, commodities, options strategies, private equity—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 55 ETFs traded in the U.S. markets, Alternative ETFs ETFs gather total assets under management of $6.89B. The average expense ratio is 1.12%. Alternative ETFs ETFs can be found in the following asset classes:
The largest Alternative ETFs ETF is the iPath Series B S&P 500 VIX Short Term Futures ETN VXX with $1.12B in assets. In the last trailing year, the best performing Alternative ETFs ETF was the VIIX at 138.36%. The most-recent ETF launched in the Alternative ETFs space was the iM DBi Managed Futures Strategy ETF DBMF in 05/08/19.