XV - What's On Your (Alternatives) Bucket List?

2025-06-14 01:30:00 ET

Introduction

Investors have in recent years sought to broaden their portfolios away from the traditional 60/40 allocation between stocks and bonds. This often entails shifting to something like a 50/30/20 portfolio, the last component of which serves as an “alternatives bucket.” There is no shortage of options with which to fill this bucket. But the “alternative” label often obscures the fact that many of these products do little to smooth the return profile of the resulting portfolio compared to the 60/40 starting point. Moreover, since the alternative bucket is usually relatively small, investors often miss the opportunity to stir it up with simultaneous allocations to multiple strategies....

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