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What’s Behind the Appeal of Portfolio Hedging Using Inverse ETFs

Now Available On Demand

In its simplest form, a hedge is an investment intended to move in the opposite direction of an asset in your portfolio that you consider to be at risk. Hedging a portfolio can be a part of a long-term investment strategy, or a short-term shelter from adverse market events, providing investors with an alternative to selling in a down market. 

Inverse ETFs are frequently used to hedge equity and bond holdings. And, as investors have diversified into a broader selection of asset classes, it has become common to see investors hedging commodity and currency holdings as well. 

In this webinar, we’ll discuss the significance of portfolio hedging, explain how inverse funds work, and provide examples of how inverse funds can help potentially reduce the risk in a portfolio. Topics covered will include:

  • Comprehending today’s market reality
  • Tactics to hedge and gain inverse exposure
  • How inverse funds work
  • The importance of rebalancing
  • Case studies—hedging equity and fixed income exposure

CFP, CIMA®, CPWA®, CIMC®, RMA®, and AEP® CE Credits have been applied for and are pending approval.

Ben Fulton
Managing Director, Tactical Products
ProShares and ProFunds

 

Leks Gerlak
Investment Strategist, Tactical Products
ProShares

 

David Armstrong - Moderator
Editor-in-Chief and Executive Director of Content and User Engagement
WealthManagement.com

 

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