As markets enjoy a breakout to new highs, the question now is whether they will build further momentum or swoon. Exchange traded fund investors are intent on determining how to be positioned for further upside while protecting against a pullback.
On the upcoming webcast, Scaling the Wall of Worry: The Power of Flexibility in Volatile Markets, Sylvia Jablonski, Managing Director and Institutional ETF Strategist at Direxion, and Taylor Lukof, Founder and CEO of ABR Dynamic Funds, will discuss various alternative strategies to help investors and advisors achieve successful dynamic management of investment assets.
For instance, investors can turn to leveraged and inverse ETFs to hedge market risks or capitalize on sudden swings.
Investors have utilized leveraged and inverse ETFs in a number of portfolio strategies. A small percentage allocations in inverse leveraged options can help hedge or mitigate detraction from existing positions, so investors are simultaneously going long and short to hedge risk. Through leveraged and inverse ETFs, investors may limit portfolio volatility or diminish drawdowns in the event of a steep market correction.