Investors are increasingly turning to liquid alternatives to satisfy their need for strategies that use liquid instruments and may offer low or even negative correlations with equities, reduced drawdowns in times of stress, and improved risk-adjusted returns. Many liquid alternative strategies lend themselves to indexing given that they are often rules-based and utilize liquid underlying instruments. S&P DJI uses its deep multi-asset capabilities as well as input from asset managers, asset owners, and consultants to create indices that allow investors to expand their toolkit in this space.

Advantages of an Index Approach

Transparent
Our indices follow transparent methodologies and provide full look-through into the underlying holdings.
Liquid
Our indices typically use exchange-traded instruments and provide daily pricing.
Investable
Our indices can be passively replicated, making them investable.
Customizable
Our indices are suitable for benchmarking and can be tailored to meet specific investor needs.

We use our multi-asset capabilities to create rules-based liquid alternative indices with several key advantages.

How Liquid Alternatives Deliver Diversification

Examine the potential pros and cons of liquid alternatives and how index innovations may help insurers diversify and protect against risk with S&P DJI’s Rupert Watts and Kelsey Stokes.

Watch now

Key Index Families

We offer a range of liquid alternative indices. Key series include our risk parity, alternative risk premia, and managed futures indices.

Liquid Alts Key Index Families

Indices

GRAPH VIEW LIST VIEW

Risk Parity

The S&P Risk Parity Indices seek to measure the performance of a multi-asset strategy that allocates risk equally among equity, fixed income, and commodities futures contracts. Within each asset class, the indices also maintain an equal risk exposure to each individual futures contract. The balanced risk contribution is designed to offer diversification that may reduce risk without sacrificing return across different economic cycles. The indices are also designed to serve as benchmarks for risk parity funds.

LEARN MORE

Alternative Risk Premia

Our alternative risk premia indices are designed to isolate pure risk sources using long-short strategies, with the goal of enhancing diversification.

LEARN MORE

Managed Futures

Some of our managed futures strategies use a quantitative methodology to track the prices of over 30 commodity, foreign exchange, and financial futures contracts, while other strategies take a long or short investment position depending on the trending signal generated by a regression of the historical prices.

LEARN MORE

Indexology® Blog

SEE ALL

Featured Research & Insights

  • Indexing Liquid Alternatives

    Read now
  • Simplifying Risk Management With Index-Based Liquid Alternatives

    Watch now
  • Seeking Volatility Protection Using Indices

    Read now
  • Indexing Risk Parity Strategies

    Read now
  • Institutional Investor Resource Center

    Explore now

Sign up to receive updates via email

Sign Up