Going Beyond Core Equity

March 1, 2007 — Adding alternative asset classes to a core equity portfolio as a risk diversifier and potential return enhancer is not a new concept, but it has become easier and more cost efficient to do so with the growth of index-based products. Specifically, Exchange-Traded Funds (ETFs) provide a liquid, transparent and cost effective way to gain exposure to many alternative asset classes. Further, ETFs allow investors to go beyond a static exposure by offering a vehicle that can be used to tactically manage that exposure.