There's a $129 million ETF that offers a unique safety net for investors hoping to avoid the next stock market crash. Here's how it works.

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 65 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 29%
  • Publisher: 51%

Portugal Notícia Notícia

Portugal Últimas Notícias,Portugal Manchetes

This ETF has helped investors stay afloat during market downturns.

We asked 6 chief equity strategists to break down the hottest trends in the stock market right now — and where you should be putting your money

Lamensdorf's services come at a price: The expense ratio on HDGE is about 2.7%, much higher than many of the low-cost ETFs that are exploding in popularity. He attributes about 200 basis points to the broker fees associated with borrowing shares for short sales, and about 150 basis points in management fees.But this yardstick comes with an important caveat: HDGE is not designed or intended to be used as part of a long-term, buy-and-hold strategy like an S&P 500 index fund.

That's why Lamensdorf recommends fund managers use HDGE as a 5% to 15% layer on top of an existing portfolio of equities, depending on how aggressive a hedge is needed at the time.

For example, HDGE emerged 3% ahead of the market in 2018 while the S&P 500 declined on an annual basis for the first time since the recession. And, over the last five years, it has slumped 11% on an annualized basis, besting the typical bear-market fund, which lost 17% over the same period. But not everyone who uses HDGE is a market bull with a contingency plan. According to Lamensdorf, some traders simply want to make a directional bet that stocks will fall. One common way to do this is through an ETF that's designed to mirror an index like the S&P 500 or the CBOE Volatility Index (

Resumimos esta notícia para que você possa lê-la rapidamente. Se você se interessou pela notícia, pode ler o texto completo aqui. Consulte Mais informação:

 /  🏆 729. in PT
 

Obrigado pelo seu comentário. Seu comentário será publicado após ser revisado.

Give Me a Signal........................ Warriors Dance .......................

tradnews_ Shut ‘Em Up

Portugal Últimas Notícias, Portugal Manchetes

Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.

Watch now: ETF Edge on the market sell-off, and the Tesla-heavy ETF that's beating the S&P this year
Fonte: CNBC - 🏆 12. / 72 Consulte Mais informação »

Biotech stocks are tracking for their best quarter ever — here's how to play itBiotech stocks took a tumble on Monday with the XBI S&P biotech ETF and IBB Nasdaq biotech ETF each falling. One of those is your best bet for a bounce.
Fonte: CNBC - 🏆 12. / 72 Consulte Mais informação »

Global stocks fall for third day as investors dial down trade hopesGlobal stocks retreated for a third straight day on Thursday as investors reduce... WWG1WGA
Fonte: Reuters - 🏆 2. / 97 Consulte Mais informação »

Why bullish investors could be the death of this stock market runOur call of the day from Slope of Hope’s Tim Knight, says investors need to pay attention to their fellow investors, who are so bullish they could drive the second-best start for stocks since 1987 right off the road.
Fonte: MarketWatch - 🏆 3. / 97 Consulte Mais informação »

Markets Right Now: Stocks open higher on trade hopesTHAT IS STILL LOWER THAN THE MARKET WAS OVER A YEAR AGO The Fed Chairman hasn’t woke up yet.... Give it a minute. 😏 Thanks Trump!
Fonte: ABC - 🏆 471. / 51 Consulte Mais informação »