60/40 Portfolio Fades As Advisors Embrace Hedge-Fund-Style ETFs For A New Era
ETFs are revolutionizing portfolios with alternative strategies, providing efficiency and transparency. Advisors are flocking to real estate, private equity, and liquid alts, seeking diversification and new sources of returns. Liquidity and transparency are the secret sauce, although complexity and high fees remain obstacles. Innovative new ETFs are emerging, including multi-strategy, buffer, and semi-transparent funds. Three to watch: (1) Real Estate Select Sector SPDR Fund (XLRE), (2) iShares Global Private Equity ETF (PEX), and (3) Innovator S&P 500 Buffer ETF (BJUN).