“The Proshares Interest Rate Hedge Strategy (IGHG) actually shorts Treasuries within a corporate bond portfolio,” he said. “In addition, long dollar. So if you have foreign investments you may be losing money if that foreign currency declines even though the market goes up.”
Finally, Lydon said there were many great multi-strategy alternative ETFs that are available.
“ETFs aren’t plain vanilla anymore,” he said. “There are some great strategies, but it’s important to do your homework.”
In addition to IGHG, Lydon’s other top 2017 ETF picks include Wisdomtree Dynamic Currency Hedged ETF (DDWM), IQ Hedge Multi-Strategy Tracker ETF (QAI) and Guggenheim S&P SmallCap 600 PureVal ETF (RZV).