Liquid Alternatives: Retail Investors Can Use Alternative ETFs To Their Advantage

September 24, 2020 | Liquid Alternatives, News
https://dailyalts.com/wp-content/uploads/2020/09/kristahicks-horizons.jpg

Alternative ETFs are low-cost, liquid, and not restricted to accredited investors.

Krista Hicks, senior vice president of business development at Horizons ETFs, will speak at the WP Advisor Connect virtual event on Thursday, September 24, 2020. The virtual event is themed “The Rise of Alternative Investments” and aims to deliver a comprehensive view of the world of alternative investments.

Hicks will participate in the workshop “Why alternatives should have a place in your portfolio” led by Women in ETFs.

She discussed her views on alt ETFs with Wealth Professional (WP) and here are the highlights from the conversation. (WealthProfessional.ca)

Krista Hicks on Alternative ETFs

  • Retail investors can access alternative strategies once available only to accredited investors…
  • …at a lower cost
  • …and gain a much more liquid exposure to these strategies
  • The shortcomings of the [60:40] mix were exposed during recent sell-offs
  • Alternative ETFs offer retail investors uncorrelated benefits
  • …also, an opportunity to get their foot in the door of alt investing with a much smaller outlay
  • Real estate, infrastructure, private equity, and private debt are too illiquid to package into an ETF
  • However, long-short equity stances, market neutral stances, currency plays, and commodities holdings can be wrapped inside an ETF…
  • …also managed futures, hedge fund performance, or index replication strategies
  • Retail investors should recognize that fixed income is simply not enough for sustenance when longevity is increasing, comments Hicks
  • A 10% portfolio allocation to alternative ETFs could help boost income streams, yet provide “ballast”
  • Alternatives could be a tool to rebalance portfolios skewed by the recent market excesses seen in runaway equity and low-yielding fixed income.

Related Story:   New Challenges for Pension Financing and Retirement Security (Bloomberg Women’s Buyside Network)

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/2022/11/Diplomacy-Avalon-Hill.png
Artificial Intelligence: CICERO, An AI That Plays The Diplomacy Game “At A Human Level”
November 23, 2022     Artificial Intelligence, News

Meta (formerly Facebook) (NASDAQ: META) announced on Wednesday the launch of CICERO, the first artificial intelligence (AI) agent to achieve human-level performance in the popular strategy game Diplomacy. So far,…

https://dailyalts.com/wp-content/uploads/2022/11/ai-application-650x435-1.jpg
Venture Capital: Astera Labs Lands $150M At $3.15B Valuation
November 22, 2022     News, Venture Capital

Astera Labs announced a $150 million Series D funding round led by Fidelity Management and Research that valued the company at $3.15 billion. Other existing investors, including Atreides Management, Intel…

https://dailyalts.com/wp-content/uploads/2022/11/afterpay-logo-holding-phone-scaled-1.jpg
FinTech: Expedia And Afterpay Tie Up To Offer BNPL For Travel
November 22, 2022     FinTech, News

Indeed, according to a CNN article, travellers should get prepared for the most expensive holiday travel season ever. Average air fare is up about 40% from 2021, and rates for…

https://dailyalts.com/wp-content/uploads/2022/11/kelly-sikkema-7alo7OJVNVw-unsplash.jpg
Digital Assets: Crypto Contagion Spreads To Miners – Iris Energy Unplugs Mining Hardware Amidst Default
November 22, 2022     Digital Assets, News

Iris Energy (NASDAQ: IREN), the Australia-based bitcoin mining firm, said in a filing that it had taken down a large chunk of its mining capacity that had been used as…