Do alternatives ETFs diversify a stock portfolio?
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Some do, and most only partly. Of the 71 alternatives ETFs ETFIQ measured over the year to Nov 4, 2026, 14 rose on average in the weeks the S&P 500 fell, 1 barely moved, 42 fell less than the index and 14 fell as much or more.
Diversifying means moving differently from what you already own, and ETFIQ measures it two ways from 52 weekly returns. Correlation says how closely a fund’s weeks moved with the S&P 500’s. Down-week capture is its average return in the weeks the index fell, as a share of the index’s own average.
Neither says whether the fund made money. A fund can rise when stocks fall and still earn less than cash, so every page prints its return against T-bills beside them: 49 of the 71 finished ahead of T-bills over the same weeks.
One year is one set of markets. The S&P 500 fell in 26 of those 52 weeks, and the next fall will not look like these.
On ETFIQ today
Answered from ETFIQ data as of Nov 4, 2026.Points (pts) are percentage points.
| Ticker | Fund | Strategy | Correlation | Down-week capture | Against T-bills |
|---|---|---|---|---|---|
| DBMF | iMGP DBi Managed Futures Strategy ETF | Managed futures | +0.26 | 32.9% | +14.3 pts |
| HELO | JPMorgan Hedged Equity Laddered Overlay | Hedged equity | +0.95 | 60.7% | +3.4 pts |
| FTLS | First Trust Long/Short Equity | Long-short equity | +0.83 | 44.7% | +4.1 pts |
| ACIO | Aptus Collared Investment Opportunity ET | Hedged equity | +0.99 | 84.3% | +3.3 pts |
| CTA | Simplify Managed Futures Strategy ETF | Managed futures | −0.14 | 5.3% | 0.0 pts |
| FLSP | Franklin Systematic Style Premia ETF | Multi-strategy | −0.13 | −21.2% | +7.9 pts |
| QAI | NYLIM Hedge Multi-Strategy Tracker ETF | Multi-strategy | +0.89 | 50.9% | +3.5 pts |
| FHEQ | Fidelity Hedged Equity ETF | Hedged equity | +0.98 | 86.0% | +4.7 pts |
| CLSE | Convergence Long/Short Equity ETF | Long-short equity | +0.73 | 59.1% | +18.4 pts |
| HEGD | Swan Hedged Equity US Large Cap ETF | Hedged equity | +0.98 | 71.4% | +3.2 pts |
| CAOS | Alpha Architect Tail Risk ETF | Hedged equity | −0.15 | −3.3% | −2.3 pts |
| KMLM | KraneShares Mount Lucas Managed Futures | Managed futures | −0.12 | −16.3% | +12.9 pts |
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ETFIQ, Do alternatives ETFs diversify a stock portfolio?, data as of Nov 4, 2026. https://etfiq.com/questions/do-alternatives-etfs-diversify
ETFIQ. (Nov 4, 2026). Do alternatives ETFs diversify a stock portfolio?. Retrieved from https://etfiq.com/questions/do-alternatives-etfs-diversify
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