Stocks continue to struggle as inflation reached a new four-decade high in June, raising expectations that the Federal Reserve will hike rates aggressively and could send the economy into a recession.
In a long-short investment strategy, the fund goes long stocks that are expected to outperform the market, while taking short positions in stocks that are likely to underperform.
These strategies have the potential to outperform in both rising and falling markets. They also add diversification benefits to a portfolio and lower volatility due to low correlations with broader indexes.
The AGFiQ U.S. Market Neutral Anti-Beta Fund
BTAL
takes long positions in low beta stocks like Automatic Data Processing
ADP
, and short positions in high beta stocks like DocuSign
DOCU
.
The Leatherback Long/Short Alternative Yield ETF
LBAY
invests in securities like Exxon Mobil
XOM
that it believes will provide sustainable shareholder yield and takes short positions in stocks it believes will decline in price. Tesla
TSLA
is one of the short holdings.
The First Trust Long/Short Equity ETF
FTLS
has 80% to 100% long positions in stocks like Apple
AAPL
and Microsoft
MSFT
, offset by 0% to 50% short positions in other stocks.
To learn more, please watch the short video above.
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