Top Alternative ETFs for Diversifying Your Portfolio

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Alternative ETFs (Exchange-Traded Funds) have become increasingly popular as investors seek to diversify their portfolios beyond traditional assets such as stocks and bonds. These types of ETFs invest in non-traditional assets such as hedge funds, private equity, real estate, and other alternative strategies. In this article, we will highlight some of the top alternative ETFs for diversifying your portfolio.

iShares Cohen & Steers REIT ETF (ICF)
The iShares Cohen & Steers REIT ETF invests in real estate investment trusts (REITs), which are companies that own and operate income-producing real estate such as office buildings, shopping centers, and apartment complexes. This ETF provides exposure to a diverse range of REITs, which can help reduce the risk of investing in individual properties.

SPDR Gold Shares ETF (GLD)
The SPDR Gold Shares ETF invests in physical gold, providing exposure to the precious metal. Gold is often used as a hedge against inflation and as a safe-haven asset during times of economic uncertainty. This ETF is backed by physical gold bullion and is designed to track the price of gold.

Global X SuperDividend Alternatives ETF (ALTY)
The Global X SuperDividend Alternatives ETF invests in a diverse range of alternative income-producing assets such as MLPs, REITs, and preferred stocks. This ETF is designed to provide a high level of income to investors while also providing exposure to non-traditional assets.

First Trust Preferred Securities and Income ETF (FPE)
The First Trust Preferred Securities and Income ETF invests in preferred securities, which are hybrid securities that have characteristics of both stocks and bonds. Preferred securities typically offer higher yields than common stocks, but with less volatility than bonds. This ETF provides exposure to a diverse range of preferred securities from a variety of issuers.

iShares MSCI Global Agriculture Producers ETF (VEGI)
The iShares MSCI Global Agriculture Producers ETF invests in companies that produce agricultural products such as crop chemicals, fertilizers, and seeds. This ETF provides exposure to a diverse range of companies across the global agriculture sector.

Global X MLP ETF (MLPA)
The Global X MLP ETF invests in master limited partnerships (MLPs), which are companies that operate in the energy infrastructure sector such as pipelines and storage facilities. MLPs are often structured as pass-through entities, which means that they pay no corporate taxes and distribute most of their earnings to shareholders. This ETF provides exposure to a diverse range of MLPs.

ProShares Hedge Replication ETF (HDG)
The ProShares Hedge Replication ETF seeks to replicate the performance of hedge funds by investing in a combination of stocks, bonds, and other assets. This ETF uses a proprietary algorithm to select assets that have historically exhibited similar performance characteristics to hedge funds. This ETF provides a way for investors to gain exposure to hedge fund-like returns without investing directly in hedge funds.

Global X Robotics & Artificial Intelligence ETF (BOTZ)
The Global X Robotics & Artificial Intelligence ETF invests in companies that are involved in the development and production of robotics and artificial intelligence technologies. This ETF provides exposure to a diverse range of companies across the global robotics and artificial intelligence sector.

In conclusion, alternative ETFs can provide investors with exposure to non-traditional assets and can help diversify their portfolios beyond stocks and bonds. There are several top alternative ETFs that investors can consider, including those that invest in real estate, commodities, MLPs, and other alternative strategies. When selecting an alternative ETF, it’s important to consider factors such as expense ratios, tracking error, and other metrics to ensure that the ETF is aligned with your investment goals and risk tolerance.

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