Alternative Investments Education Center
In the new world of investing, alternatives are powerful tools that can help investors achieve greater diversification, dampen volatility and boost returns. The resources here are designed to give you a greater understanding of alternatives and help you weigh some important factors when selecting from among the different investment choices.
What Are Alternative Investments?
Some investors still think of alternative investments as an exclusive, rather narrowly defined class of investments. It is important to understand that, especially now, this is far from the truth. Due to a number of innovations, alternatives today come in a variety of packages, encompass a wide range of assets and strategies and are available to nearly all investors.
Why Should I Use Alternative Investments?
A traditional "60/40" allocation to stocks and bonds may no longer be enough to provide investors with the returns and diversification needed to achieve their long-term goals. When actively selected for their low correlation to other portions of a portfolio, adding alternatives to a traditional portfolio has the potential for better outcomes: lowering volatility, enhancing returns and broadening diversification.
How Can I Use Alternative Investments?
Alternative investments offer the potential for a variety of benefits since they generate return in different ways. When selecting individual investments, it's important to think about how you want each to contribute to overall portfolio performance. This will help you to prioritize which specific attributes are most important for a given investment.
The information on this Web site is intended for U.S. residents only. The information provided does not constitute a solicitation of an offer to buy, or an offer to sell securities in any jurisdiction to any person to whom it is not lawful to make such an offer.
Incorporating alternative investments into a portfolio presents the opportunity for significant losses including in some cases, losses which exceed the principal amount invested. Also, some alternative investments have experienced periods of extreme volatility and in general, are not suitable for all investors.
Investors should consider the investment objectives, risks, charges and expenses of any fund carefully before investing. The funds' prospectuses and, if available, the summary prospectuses contain this and other information about the funds, and are available, along with information on other BlackRock funds by calling 800-882-0052. The prospectus and, if available, the summary prospectuses should be read carefully before investing.
Prepared by BlackRock Investments, LLC, member FINRA.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE