ALTERNATIVES

Diversify with liquid alternatives

Liquid alternatives can offer diversified return drivers with daily liquidity, giving advisors more tools to manage risk and opportunity for their client portfolios.
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Why liquid alternatives?

Chart showing liquid alternative funds delivered positive returns during the months that stocks and bonds both had negative returns from January 2022 to March 2026.
Potential for consistent, differentiated returns

Seek to add sources of return beyond stocks and bonds to help manage outcomes across market cycles, particularly when dispersion creates opportunities for active management.

Diversification when it matters

Incorporate low-correlated strategies designed to help portfolios hold up when traditional asset classes move together.

Built for portfolio implementation

Access BlackRock’s alternative strategies in transparent, thoughtfully designed vehicles with daily liquidity—making it easier to allocate, rebalance, and communicate with clients.

OUR FUNDS

Explore liquid alternatives

Built on BlackRock’s institutional hedge fund expertise, our daily liquid alternative mutual funds are thoughtfully designed to seek consistent returns across market environments.

iShares Systematic Alternatives Active ETF (IALT)

A core multi-strategy alternative designed to pursue total returns across market cycles by allocating across complementary alternative investment strategies.

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Tactical Opportunities Fund (PBAIX)

A global macro strategy seeking to capitalize on country-level dispersion across equities, fixed income, and currencies through dynamic long and short positioning.

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Global Equity Market Neutral Fund (BDMIX)

An equity market neutral strategy seeking uncorrelated returns through long and short stock selection, with a focus on reducing exposure to market direction.

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Event Driven Equity Fund (BILPX)

An event driven equity strategy aiming to capitalize on transformative corporate events through long and short investments across developed market companies.

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Liquid alternatives in your portfolios

Use our sample portfolio tool to evaluate how blending liquid strategies may enhance diversification alongside traditional assets.
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Our liquid alternatives platform

$28
billion in liquid alternatives assets under management2
Increase30
years of experience in hedge funds and liquid alternatives3

2. Source: Morningstar Direct, as of 03/31/2026

3. Source: BlackRock as of 03/31/2026

INSIGHTS

The latest on liquid alternatives

FAQ

Frequently asked questions

  • The term “liquid alternatives” or “liquid alts” refers to alternative investment strategies that are packaged in vehicles such as mutual funds or exchange-traded funds (ETFs) that are highly liquid, easily traded and well regulated.

    They are broadly available to advisors and individual investors by virtue of their liquidity and wrapper. Liquid alts employ strategies such as long/short, market neutral, global macro or derivatives to seek differentiated returns. They are not private markets investments.

  • Liquid alternatives are unique in structure, liquidity and accessibility.

    They are offered in regulated mutual funds or ETFs, typically provide daily liquidity and have lower investment minimums. Some other alternatives such as hedge funds, private equity, or private credit often involve lockups, limited liquidity and higher minimums. Liquid alts do not invest directly in private markets and operate within registered fund constraints.

  • Liquid alternatives may help enhance diversification and manage portfolio risk.

    Many strategies seek returns that are less dependent on stock and bond markets, which may help reduce volatility or improve risk-adjusted returns. They are designed to complement, not replace, core equity and fixed income allocations.

  • Liquid alternatives typically offer:

    • Daily liquidity
    • Regulatory oversight
    • Greater transparency than private alternatives
    • Access to non-traditional strategies such as long/short, derivatives or tactical allocations
    • Broad accessibility with lower minimums

    They operate within the liquidity and regulatory requirements of mutual funds and ETFs.

  • Liquid alternatives are generally used as a complement to traditional stock and bond allocations.

    They may help diversify return sources, manage downside risk or reduce volatility. Allocations should align with client objectives, risk tolerance and time horizon.