Fuse Blog

The Beat Goes On for Risk Managed Liquid Alts

  • The Risk Managed liquid alternative category, which includes Options Trading and Derivative Income strategies, comprised 44% of the liquid alternative market as of the end of April 2023, attracting $12.5 billion in year-to-date net inflows. Risk Managed and Global Macro/Macro Trading make up over 50% of liquid alternative assets, and with one-third of 2023 completed, the two have generated a combined $13.5 billion of net inflows.
  • The JPMorgan Equity Premium Income ETF has been the sought-after Derivative Income product with $7.5 billion in net flows through April 2023. Defined Outcome ETFs at Innovator and First Trust constitute the best-selling products within the Options Trading sub-category.
  • While firms may be less inclined to pursue acquisitions at unattractive valuations exacerbated by higher interest rates, investor appetite for risk management has shown no signs of slowing given its value in reducing portfolio volatility and boosting income during times of economic instability. We expect client demand will continue for the foreseeable future.

Growth of Risk Managed Strategies

6.6.23 Blog Rev
Source: Morningstar & FUSE Research Network