Larry Berman CFA, CMT, CTA Active Bear ETF HDGE-N DON'T BUY Feb 10, 2020

Short lousy companies and you get some more oomph in the markets. Don’t use in isolation. Add this to your portfolio of longs to stop you falling as much in a bear market.

(A Top Pick Aug 17/12. Down 4.07%.) This is an ETF that Shorts fundamentally poor companies. Can be an okay hedge in your portfolio if you are beginning to feel a little bit cautious about the markets. Likes the concept for short-term periods where you are little bit bearish and you want to offset some of the possible negatives on some of your long stocks.

A Canadian ETF that would short the S&P 500 or the NASDAQ? Doesn’t know of any on the Canadian side, but there is this one in the US. They take the S&P 500 and pick out a number of stocks, usually around 30 or 40, that their prognosis suggests are overvalued, and they Short the stocks. A great way of buying a basket of shorted stocks. It is about 95% negatively correlated to the S&P 500. Will do pretty much exactly the opposite of the S&P 500.

HIX is an inverse play on the TSX 60 similar to HDGE or RWM. It is a single inverse, so there is only a tiny element of future market exposure. There is no leverage involved in HIX.