There are about 350 new exchange traded funds (ETFs) in the pipeline and once launched will double the number of ETFs available to investors. Some of these ETFs are based on alternative strategies, such as shorting stocks. These new funds offer strategies to diversify retirement accounts or hedge against a bear market, reports Jeff D. Opdyke of The Wall Street Journal.
Financial experts warn these new breed ETFs can cause havoc on a portfolio, especially since the ETFs are shorting stocks- betting the stock prices will fall. Typically these type of investments are not allowed in retirement accounts, but if one purchases an ETF that does the shorting, it can be bought in the retirement account.
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