Investing in Liquid Alternatives

Liquid alternatives help investors explore non-traditional investment styles, primarily using publicly traded securities to meet a range of objectives.




Liquid alternatives funds may present unique risks.
Read each fund's prospectus before investing.

Reasons to consider liquid alternative investments


Help achieve your objectives

Help grow your wealth, diversify your portfolio, and manage risk by generating returns that may be less correlated to traditional markets.


Liquid access to non-traditional strategies

Delivers non-traditional investment strategies and exposure to securities that generally trade in public markets, are priced daily, and have the flexibility to take long and short positions.


Familiar investment structures from reputable providers

Can be accessed via familiar investment vehicles, such as mutual funds and exchange-traded funds from Fidelity and other well-known fund managers. 


Liquid alternative funds

Explore funds across a variety of investment styles and vehicles that can help you pursue specific investment objectives from Fidelity and and other well-known fund managers. Learn more


How funds are selected

Equity market neutral


  • (FEMNX) Fidelity Equity Market Neutral Fund

Equity hedged


  • (FEQHX) Fidelity Hedged Equity Fund



Commodity interest trading involves substantial risk of loss. Past performance is not indicative of future results.


Equity hedged


  • (FHEQ) Fidelity Hedged Equity ETF
  • (FBUF) Fidelity Dynamic Buffered Equity ETF

Derivative income


  • (FYEE) Fidelity Yield Enhanced Equity ETF



Commodity interest trading involves substantial risk of loss. Past performance is not indicative of future results.

Long-short equity


  • (PWLBX) PIMCO RAE Worldwide Long/Short Plus Fund
  • (AGAQX) Allspring Global Long/Short Equity Fund ETF
  • (JSFBX) John Hancock Seaport Long/Short Fund

Equity market neutral


  • (BDMAX) BlackRock Global Equity Market Neutral Fund
  • (QAMNX) Federated Hermes MDT Market Neutral Fund
  • (PTFAX) PIMCO RAE Fundamental Advantage PLUS Fund
  • (JMNAX) JPMorgan Research Market Neutral Fund

Equity hedged


  • (PHEFX) T. Rowe Price Hedged Equity Fund
  • (JHQAX) JPMorgan Hedged Equity Fund

Macro trading


  • (PCBAX) BlackRock Tactical Opportunities Fund
  • (JDJAX) John Hancock Diversified Macro Fund
  • (GMSDX) Invesco Macro Allocation Strategy Fund
  • (DVRAX) MFS Global Alternative Strategy Fund

Systematic trend


  • (PQTAX) PIMCO Trends Managed Futures Strategy Fund
  • (GMSAX) Goldman Sachs Managed Futures Strategy Fund

Event driven


  • (BALPX) BlackRock Event Driven Equity Fund

Derivative income


  • (BMEAX) BlackRock High Equity Income Fund
  • (GSPAX) Goldman Sachs U.S. Equity Dividend and Premium Fund
  • (JEPAX) JPMorgan Equity Premium Income Fund
  • (SCAUX) Invesco Income Advantage U.S. Fund

Multi-strategy


  • (BAMBX) BlackRock Systematic Multi-Strategy Fund
  • (GARTX) Goldman Sachs Absolute Return Tracker Fund
  • (JAAAX) John Hancock Funds Alternative Asset Allocation Fund
  • (FAAAX) K2 Alternative Strategies Fund



Commodity interest trading involves substantial risk of loss. Past performance is not indicative of future results.

Long-short equity

  • (PHDG) Invesco S&P 500 Downside Hedged ETF

Equity hedged

  • (HELO) JPMorgan Hedged Equity Laddered Overlay ETF

Derivative income

  • (JEPI) JPMorgan Equity Premium Income ETF
  • (JEPQ) JPMorgan Nasdaq Equity Premium Income ETF
  • (GPIX) Goldman Sachs S&P 500 Core Premium Income ETF
  • (GPIQ) Goldman Sachs Nasdaq 100 Core Premium Income ETF

Multi-strategy

  • (FLSP) Franklin Templeton Systematic Style Premia ETF



Commodity interest trading involves substantial risk of loss. Past performance is not indicative of future results.

Learn more about investing in alternatives

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Are liquid alternatives for you?

Learn about liquid alternative investments, their potential advantages, and investment styles you can choose from.

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Why you might consider alternatives

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Liquidity in alternatives

Explore the different levels of liquidity available in alternative investments.

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Frequently asked questions

  • What are liquid alternative investments?

    Liquid alternatives seek to enhance returns, diversify and/or provide risk mitigation by investing in public markets, such as equities, fixed income, commodities, currencies, and options, or in derivatives tied to the performance of those markets. Unlike traditional buy-and-hold strategies, liquid alternatives usually have the flexibility to take both long and short positions, the latter seeking to benefit from declining asset values. Liquid alternatives are typically offered in liquid structures, such as mutual funds and ETFs. They pursue a range of strategies, such as long-short equity, relative value, options-based, and global macro strategies.

  • Why would I consider investing in liquid alternatives?

    Liquid alternatives can be used to pursue different investment objectives, including return enhancement, portfolio diversification, and/or risk management. Their returns generally have low correlation to broad movements in the stock and bond markets, so liquid alternatives can offer investors a way to complement their exposure to those traditional markets.

  • What are the benefits of investing in liquid alternatives?

    There are several potential benefits to investing in liquid alternatives:

    • Pursue investment objectives: Liquid alternatives may help grow your wealth, diversify your portfolio and manage risk by generating returns that may be less correlated to traditional markets.
    • Flexibility: Unlike traditional "buy and hold" strategies, liquid alternatives have the flexibility to take both long and short positions and use derivatives to pursue a variety of risk and return objectives.
    • Structure: They are typically structured like mutual funds or ETFs and can generally be bought and sold daily.
    • Transparency: These investments trade in public markets and provide regular updates on their performance, holdings, and strategies.
  • What are the risks of investing in liquid alternatives?

    When considering investing in liquid alternatives, it’s important to understand the associated risks. Here are some key factors to keep in mind:

    • Market impact: Like all investments, liquid alternatives are subject to market fluctuations, which can affect their value.
    • Complexity: Some liquid alternatives may pursue complex strategies, and it may be difficult to understand how they can affect your overall portfolio.
    • Performance: Liquid alternatives, like any type of investment, can experience periods of underperformance.
    • Leverage: Many liquid alternatives use leverage to enhance returns, which can also amplify losses.

    Each fund and strategy may present their own unique risks. Before investing carefully review each funds' prospectus and weigh the risks against your financial goals.

  • How do I invest in liquid alternatives?

    At Fidelity, you can purchase a variety of liquid alternatives on Fidelity.com using the Buy button on a specific fund page. Note that for certain funds you may need to review a designated investment agreement and attest that you are an experienced investor who understands the risks that come with that investment.