Asset manager First Trust Advisors has launched a new actively managed ETF-of-ETFs, First Trust Multi-Strategy Alternative ETF (LALT), providing diversified exposure to alternative asset categories and strategies.

LALT will typically invest in other First Trust ETFs, including hedged equity, long/short, event-driven, managed futures, commodities, real estate, opportunistic fixed income, relative value, currencies and global macro.

LALT has been listed on NYSE Arca with an expense ratio of 1.23%. The ETF’s expense ratio includes 1.03% in acquired fund fees and expenses.

“We believe this ETF may be an effective tool for investment professionals seeking to diversify client portfolios while also potentially generating returns from multiple alternative risk premiums in the years ahead,” said Ryan Issakainen, CFA, Senior Vice President and ETF Strategist at Wheaton, IL-based First Trust.

LALT constructs its portfolio by considering each strategy’s risk and return profile, as well as its correlation to other alternative strategies and to typical equity and fixed income markets. The ETF is designed to enhance traditional equity/fixed income portfolios by boosting total returns and helping to diversify overall risk.

First Trust manages approximately $190 billion through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and separate managed accounts.