Amazon (AMZN) shares retreat after wide Q2 earnings miss >>> READ MORE

4 Funds to Harness the Awakening Bear

Consider these short options while the market looks shaky

      View All  

Ranger Equity Bear ETF

AdvisorShares185When 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.

The Ranger Equity Bear ETF’s current top short positions include Fossil (FOSL), Deutsche Bank (DB) and Amdocs (DOX).

Article printed from InvestorPlace Media,

©2017 InvestorPlace Media, LLC