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Hedging Market Selloffs With ETFs

Benzinga.com
0 Comments| January 27, 2015

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The stock market continues to trade within a narrow range in 2015 with big moves on a daily basis.

The S&P 500 failed to break above resistance at a double top at 2064 late last week, and has started this week on the defensive note.

To combat falling equity prices, one option for long-term investors is a hedging strategy. This strategy could involve keeping the current positions in a portfolio and adding an inverse ETF that will profit when the overall stock market declines.

Hedging is typically for more advanced investors, and is not a long-term investment.

Below are a few ETFs that could be beneficial for such a strategy:

ProShares Short S&P 500 ETF

The ProShares Short S&P500 (ETF) (NYSE: SH) is made up of various short positions on the ...

/www.benzinga.com/etfs/sector-etfs/15/01/5182589/hedging-market-selloffs-with-etfs alt=Hedging Market Selloffs With ETFs>Full story available on Benzinga.com

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