FTLS
First Trust Long/Short Equity ETF
stock NYSE ETF

Depends what you want out of the diversifier. Some pay you to hold them, some don't, and that's really the whole question with this bucket.
Managed futures actually do have a positive expected return case. The trend/time-series momentum premium is one of the sturdier things in the literature. But you're not owning it for the standalone Sharpe, you own it for the payoff shape, it tends to show up when equities are in a long bad stretch and it bleeds a bit in calm bull years. Convexity, not a smooth stream. You have to be able to sit through the dry spells...
CLSE and FTLS I'd be more careful with. Both are young enough that they've basically seen one regime, and a net-long long/short book plus some factor timing can look incredible in a favorable window. FTLS carries net long exposure by design too, so a chunk of that return is just beta anyway. Not knocking them. A few years on a L/S fund is mostly regime plus luck imo.
If I owned either it'd be a small satellite, sized to a job I can name out loud. Which is basically what steady_compounder said upthread, and I think he's got it right.

Depends what you want out of the diversifier. Some pay you to hold them, some don't, and that's really the whole question with this bucket.
Managed futures actually do have a positive expected return case. The trend/time-series momentum premium is one of the sturdier things in the literature. But you're not owning it for the standalone Sharpe, you own it for the payoff shape, it tends to show up when equities are in a long bad stretch and it bleeds a bit in calm bull years. Convexity, not a smooth stream. You have to be able to sit through the dry spells...
CLSE and FTLS I'd be more careful with. Both are young enough that they've basically seen one regime, and a net-long long/short book plus some factor timing can look incredible in a favorable window. FTLS carries net long exposure by design too, so a chunk of that return is just beta anyway. Not knocking them. A few years on a L/S fund is mostly regime plus luck imo.
If I owned either it'd be a small satellite, sized to a job I can name out loud. Which is basically what steady_compounder said upthread, and I think he's got it right.