Intangible alternative assets
An intangible alternative asset is a subcategory of alternative assets, which constitutes an asset class consisting of assets not classified within traditional or classic asset classes, and at the same time having non-physical properties.
Alternative assets are often attractive to investors because of their potentially high returns, in addition to their ability to provide for diversification away from traditional assets, and hence its their potential of reducing the overall risk associated with a set of assets (as part of a portfolio or fund).
Main types
The main types of intangible alternatives (intangible alternative assets) are:
- Private equity.
- Digital currencies.
- Hedge fund shares.
- Exchange traded funds (ETFs).
- Securitized products (e.g., collateralized loan obligations, CLOs).
- Distressed securities.
- Volatility products.
- Credit derivatives.
- Managed futures.
- Digital arts and collectibles.
- Tokens and cryptos.
