Just a few brief years ago, it was next to impossible for the average investor to gain financial exposure to the commodities market. Thanks to the arrival of ETFs, commodities exposure is now just a click away.
The newest buzz is gaining access to sophisticated strategies that were once reserved for Wall Street’s elite.
Capturing spreads and margins, profiting from asset classes that deviate from their historical norms and taking advantage of mispricing, are strategies now introduced to main street via the iShares Diversified Alternatives Trust (ALT). This is the first actively managed, non-index based ETF for iShares.
To accomplish its objective, the trust will seek to take advantage of interest rate and futures contract price differentials by simultaneously entering into long and short positions in various bond, commodity, currency and interest rate futures.