An exchange-traded fund (ETF) that provides exposure an asset or a group of assets belonging to alternative asset classes such as hedge funds, managed futures, digital assets, etc. Alternatives, or “alts” for short, are investments or investing venues that fall outside of the classic asset classes, which are stocks, bonds, and cash (cash instruments).

Alternatives are more complex to understand and invest in, and typically require minimum size of investment. These investments have also nuanced fee structures, are less liquid that mainstream investments and are generally perceived as carrying more risk to individual investors.

ETFs may be constructed to avail from the characteristics of alternatives in terms of exposure, diversification, risk profile, etc. Such alternatives include private equity, venture capital, real estate, commodities, hedge funds, collectibles and artworks, crypto assets, etc.