International Alternative

International Alternative Funds or ETFs invest the majority of their assets in... International Alternative Funds or ETFs invest the majority of their assets in so-called alternative assets around the world. Alternative assets are generally defined as any asset other than publicly traded stocks, bonds, mutual funds, money market funds, or cash. Common alternative assets include hedge funds, real estate, private equity, venture capital, precious metals and other commodities, infrastructure, cryptocurrencies, and collectibles (such as art). An International Alternative Fund or ETF may be actively or passively managed, and may, depending on its mandate, invest in one or more alternative asset classes. It may also spread its investments among various regions and geographies, giving more or less weight to certain areas. Alternative assets have seen tremendous growth in the last few decades. They have received significant investor inflows due to the perception that they can offer better risk-adjusted returns than traditional assets. At times, alternative assets may outperform traditional assets, and they may also exhibit returns that don’t move in lockstep with publicly traded equities and bonds. This can reduce the overall volatility of a portfolio. Developed markets are at the forefront of interest in Alternatives. For example, assets of North American private equity funds hit US$3.6 trillion as of 2023. In addition, 81% of hedge fund assets under management (AUM) as of 2023 were managed by funds based in North America. However, the rest of the world is also expected to experience rapid growth in their markets for alternative investments as well. International Alternative Funds or ETFs may be appropriate depending on the alternative in question and an investor’s risk tolerance. It’s important to note that alternatives may not perform as well as they did in the past, and risk aversion in public markets can spread over into alternative assets. Last Updated: 12/04/2024 View more View less

International Alternative Funds or ETFs invest the majority of their assets in so-called alternative assets around the world. Alternative assets are generally defined as any asset other than publicly traded stocks, bonds, mutual... International Alternative Funds or ETFs invest the majority of their assets in so-called alternative assets around the world. Alternative assets are generally defined as any asset other than publicly traded stocks, bonds, mutual funds, money market funds, or cash. Common alternative assets include hedge funds, real estate, private equity, venture capital, precious metals and other commodities, infrastructure, cryptocurrencies, and collectibles (such as art). An International Alternative Fund or ETF may be actively or passively managed, and may, depending on its mandate, invest in one or more alternative asset classes. It may also spread its investments among various regions and geographies, giving more or less weight to certain areas. Alternative assets have seen tremendous growth in the last few decades. They have received significant investor inflows due to the perception that they can offer better risk-adjusted returns than traditional assets. At times, alternative assets may outperform traditional assets, and they may also exhibit returns that don’t move in lockstep with publicly traded equities and bonds. This can reduce the overall volatility of a portfolio. Developed markets are at the forefront of interest in Alternatives. For example, assets of North American private equity funds hit US$3.6 trillion as of 2023. In addition, 81% of hedge fund assets under management (AUM) as of 2023 were managed by funds based in North America. However, the rest of the world is also expected to experience rapid growth in their markets for alternative investments as well. International Alternative Funds or ETFs may be appropriate depending on the alternative in question and an investor’s risk tolerance. It’s important to note that alternatives may not perform as well as they did in the past, and risk aversion in public markets can spread over into alternative assets. Last Updated: 12/04/2024 View more View less