Alternative Investments: First Trust Unveils ETF Focused On Alternative Assets

February 15, 2023 | Alternative Investments, News
https://dailyalts.com/wp-content/uploads/2023/02/gallery-ga66129d21_640.jpg

The LALT ETF provides exposure to alternative investments that can diversify risk, enhance returns or generate higher yield than traditional investments.

First Trust has launched an actively managed ETF called the First Trust Multi-Strategy Alternative ETF (NYSEARCA: LALT). The fund aims to provide long-term total return by investing in alternative asset categories and strategies using exchange-traded products, such as ETFs, ETNs, and trusts backed by physical commodities or currencies.

The aforesaid alternative asset categories and strategies include, but are not limited to, the following: hedged equity; long/short; event driven; managed futures; commodities; real estate; opportunistic fixed income; relative value; currencies; and global macro. (Businesswire)

LALT seeks to provide lower correlation and more diversified risk exposures compared to traditional equity and fixed income benchmarks. The fund is intended to be an effective tool for investment professionals seeking to diversify client portfolios and generate returns from multiple alternative risk premiums.

Annual expenses of the fund are 1.23%.

LALT’s Top holdings as on 2/13/2023*

First Trust Alternative Absolute Return Strategy ETF         21.55%

First Trust Managed Futures Strategy Fund                           21.27%

First Trust Merger Arbitrage ETF                                                11.86%

First Trust Long/Short Equity ETF                                               10.30%

First Trust Low Duration Opportunities ETF                           10.08%

First Trust TCW Unconstrained Plus Bond ETF                      10.08%

First Trust Global Tactical Commodity Strategy Fund        9.79%

Invesco CurrencyShares Swiss Franc Trust                             5.01%

* Excluding cash.

Fundspeak

“After a difficult year for both stocks and bonds, it’s no surprise that demand for alternatives has grown stronger,” said Ryan Issakainen, CFA, Senior Vice President and ETF Strategist at First Trust. “We believe this ETF may be an effective tool for investment professionals seeking to diversify client portfolios while also potentially generating returns from multiple alternative risk premiums in the years ahead.”

Related Story:  First Trust Launches Index Metaverse ETF

Image by PIRO from Pixabay

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2023/03/Buy-1.jpg
Digital Assets: Ledger, Maker Of Crypto Security Hardware, Raises Nearly All Of $100M Series C Round
March 31, 2023     Digital Assets, News, Venture Capital

Paris-based startup Ledger, which makes hardware wallets for cryptocurrency investors, has raised €100m ($109m) in funding, valuing the company at €1.3bn. The round was led by investors including Digital Finance…

https://dailyalts.com/wp-content/uploads/2023/03/Three-phones-dropping-v3-2021-prosumer.jpg
FinTech: Cogo And Eliq Partner To Help Banking Customers Enhance The Energy Efficiency Of Their Homes
March 31, 2023     ESG and Sustainability, FinTech, News

Cogo, a fintech which collaborates with banks to assist customers in decreasing their carbon footprint as a carbon footprint management firm, is partnering with Eliq, a company that specializes in…

https://dailyalts.com/wp-content/uploads/2023/03/steven-hwg-zBsdRTHIIm4-unsplash.jpg
Venture Capital: The LSP Dementia Fund Closes €260M (US$283M) To Address Dementia, One Of The Most Significant Health Crises Of Our Era
March 31, 2023     Latest News, News, Venture Capital

The LSP Dementia Fund has reached a final close at €260 million (US$ 283 million), surpassing its initial target of €100 million. The fund, which is managed by EQT Life…

https://dailyalts.com/wp-content/uploads/2023/03/faq26.jpg
Artificial Intelligence: The DAGGER AI Model Gives Advance Warning Of Dangerous Solar Storms
March 31, 2023     Artificial Intelligence, News

Researchers have developed an AI-based model that combines satellite data and machine learning to predict where an impending solar storm will strike on Earth, offering 30 minutes of advance warning….