Proshares has launched a new ETF, that seek to provide exposure to a diverse set of Alternative Assets and Strategies.
ProShares Morningstar Alternatives Solution ETF seeks investment results, before fees and expenses, that track the performance of the Morningstar® Diversified Alternatives Index.The Morningstar® Diversified Alternatives Index is designed to provide diversified exposure to alternative asset classes while enhancing risk-adjusted portfolio returns when combined with a range of traditional investments. It allocates among a comprehensive set of alternative underlying ETFs that employ alternative and non-traditional strategies such as long/short, market neutral, managed futures, hedge fund replication, private equity, infrastructure or inflation-related investments. The index allocates to the underlying ETFs based on a proprietary optimization model which annually calculates the allocation to each underlying ETF based on the improvement in portfolio risk/return characteristics each underlying ETF provides to a traditional stock and bond portfolio. In addition, at each monthly rebalance, the index applies a tactical momentum signal designed to increase the allocations towards asset classes that exhibit positive relative trends over the prior six months.