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Hedging the Market With ETFs Is Even Trickier Than it Looks

Hedging the Market With ETFs Is Even Trickier Than it Looks

(Bloomberg) -- The last few weeks have reminded investors that the market can go down as well as up (who knew?). Hedging can help protect a portfolio, and ETFs can help with that cause, but you're effectively picking your poison; some limit the potency of the hedge, others carry unforeseen costs.

On this week’s show, Joel and Eric sat down with self-described “ETF nerd” Michael Venuto of Toroso Investments to discuss the pros and cons of the various approaches, including volatility products, inverse funds, hedge fund strategies, gold, put options, treasuries and cash.

 

To contact the authors of this story: Joel Weber in New York at jweber66@bloomberg.net, Eric Balchunas in Skillman at ebalchunas@bloomberg.net.

To contact the editor responsible for this story: Francesca Levy at flevy6@bloomberg.net, Magnus Henriksson

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