With interest rates still low, the advisor hunt for yield and investment alpha seems never ending. A variety of specialized funds may provide a solution. In their own ways, these funds seek to capture some of the strategies of risky, volatile investments, such as hedge funds or futures contracts, without being as risky or volatile.

The funds are no miracle cure – some advisors object to the relatively high fees or complexity. And one of the strategies relies on volatility (either up or down) to generate gains, meaning periods of relative quiet produce poor outcomes.

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