A version of this article was published in the January 2017 issue of Morningstar ETFInvestor. Download a complimentary copy of ETFInvestor here.
On paper, liquid alternatives exchange-traded funds appear to be full of promise. They represent the pairing of asset classes or strategies that provide uncorrelated returns with an investment vehicle that is cheap, transparent, and liquid. Here, I'll explore the paper case for liquid alternatives ETFs and the real-world results these funds have produced.
Ben Johnson, CFA does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.