liquid alternatives News & Analysis

BlackRock (BLK) Applies Hedge Fund Strategies to ETFs

BlackRock (BLK) is leveraging hedge fund strategies in its exchange-traded funds (ETFs), particularly through its liquid alternatives ETFs, where a long-short investment strategy is employed. Portfolio manager Jeffrey Rosenberg noted that this approach offers diversification benefits as traditional bonds no longer reliably offset stock losses. The iShares Systematic Alternatives Active ETF (IALT) has increased by almost 8% in 2023, while the iShares Managed Futures Active ETF (ISMF) is up nearly 5%. Client interest in these liquid alts ETFs is on the rise as investors seek to enhance portfolio diversification amid changing market dynamics.