Ranger Equity Bear ETF
When it comes to shorting stock, John Del Vecchio and Brad H. Lamensdorf are veterans. The duo even recently published a compelling book on the topic: What’s Behind the Numbers?: A Guide to Exposing Financial Chicanery and Avoiding Huge Losses in Your Portfolio.
It’s a good read and will guide you well, but if you personally don’t have time to dive into a company’s complex financials, then you can invest in their fund: the AdvisorShares Ranger Equity Bear ETF (HDGE).
HDGE’s main focus is to employ deep fundamental analysis to find those companies that have iffy earnings or deteriorating operations. It’s a relatively new fund, launched in 2011, and considering how the market has moved since then, it should be no surprise that its performance since inception has been lackluster. Further dragging down the Bear ETF’s returns is a hefty 1.93% expense ratio.
However, should stocks go into a tailspin, expect low-quality companies to see the most damage, and expect HDGE to thrive.