Strategy Note /
Global

Are Alternative ETFs Good Diversifiers?

    FactorResearch
    7 December 2022
    Published byFactorResearch
    1. Alternative products with uncorrelated returns do not necessarily provide diversification benefits
    2. Out of 10 alternatives ETFs, only one product improved the Sharpe ratio of a 60/40 portfolio
    3. Correlations should be regarded carefully in fund selection