First Trust Multi-Strategy ETF: Alternatives Exposure
- First Trust Advisors, a prominent asset manager, has announced the launch of the First Trust Multi-Strategy alternative ETF (LALT), an actively managed ETF-of-ETFs.
- The new ETF, trading on NYSE Arca, carries an expense ratio of 1.23%, which includes 1.03% in acquired fund fees and expenses.
- The First Trust multi-strategy alternative ETF constructs its portfolio by evaluating each strategy’s risk and return characteristics, along with its correlation to other alternative strategies and traditional equity...
The First Trust Multi-Strategy ETF (LALT) introduces a novel approach to portfolio diversification, making it a compelling option for investors seeking alternative asset exposure. This actively managed ETF-of-ETFs invests across a spectrum of alternative categories, from hedged equity to commodities. Strategically, LALT aims to enhance returns and mitigate risks by incorporating strategies like long/short or event-driven opportunities. With an expense ratio of 1.23%,LALT provides access to a diversified portfolio managed by First Trust,a leader in asset management with approximately $190 billion in assets. News Directory 3 highlights this innovative fund designed to complement customary portfolios. Discover what’s in store for LALT and its potential impact on investment strategies.
First Trust Launches Multi-Strategy Alternative ETF
Updated May 26, 2025
First Trust Advisors, a prominent asset manager, has announced the launch of the First Trust Multi-Strategy alternative ETF (LALT), an actively managed ETF-of-ETFs. This new fund seeks to provide investors wiht diversified exposure to a range of alternative asset categories and strategies.
The new ETF, trading on NYSE Arca, carries an expense ratio of 1.23%, which includes 1.03% in acquired fund fees and expenses. LALT will primarily invest in other First Trust ETFs, encompassing areas such as hedged equity, long/short strategies, event-driven opportunities, managed futures, commodities, real estate, opportunistic fixed income, relative value, currencies, and global macro.
The First Trust multi-strategy alternative ETF constructs its portfolio by evaluating each strategy’s risk and return characteristics, along with its correlation to other alternative strategies and traditional equity and fixed income markets. The ETF is designed to complement conventional equity and fixed income portfolios by potentially enhancing total returns and diversifying overall risk.
“We believe this ETF may be an effective tool for investment professionals seeking to diversify client portfolios while also potentially generating returns from multiple alternative risk premiums in the years ahead,” said Ryan Issakainen, senior vice president and ETF strategist at First Trust.
First Trust currently manages approximately $190 billion in assets across various investment vehicles, including unit investment trusts, exchange-traded funds, closed-end funds, mutual funds, and separate managed accounts.
What’s next
Investors interested in exploring alternative investment strategies will be watching LALT to see how it performs in the current market environment, especially regarding its ability to deliver diversified exposure and generate returns.