ETF Strategies to Recession-Proof Your Portfolio | Page 2 of 2 | ETF Trends

In addition to dividends, Gue recommends using shorts. Shorts, he claims, can help hedge your portfolio against a market decline. Although theoretically, you could lose more than 100% of your investment, Gue argues that it is unlikely that a stock would double in a few months. [These ETFs May Protect You in Down Markets.]

If you don’t want to deal with margin accounts, ETFs have made it easier to take short positions. Two such ETFs include ProShares Short S&P 500 (NYSEArca: SH) and ProShares Short Russell 2000 (NYSEArca: RWM). [Leveraged ETFs: Useful, but be Careful.]

For more stories on investing, visit our ETF 101 category.

Sumin Kim contributed to this article.