Alternative investments education center

 

Alternatives are powerful tools that can help you achieve greater diversification, dampen volatility and boost returns. Use these resources to learn more about alternatives and some of the important factors to consider when you’re thinking about investing.

 


What are alternative investments?

Some investors still think of alternative investments as an exclusive, narrowly defined class of investments, but that’s far from the truth. Alternatives come in a variety of packages, encompass a wide range of assets and strategies and are available to nearly all investors.

Why should I consider alternative investments?

A "60/40" allocation to stocks and bonds may no longer be enough to meet long-term investment goals. When actively selected for their low correlation to other portfolio investments, alternatives may lower volatility, enhance returns and broaden diversification

How can I use alternative investments?

Alternative investments differ from one another in how they generate return, so they can be used in different ways — to reduce a portfolio's interest rate risk or to mitigate the effects of stock market volatility, for example. Choose particular alternatives based on how you want them to contribute to overall portfolio performance.