U.S. Market Neutral Anti-Beta Fund
When discussing equities, beta refers to the correlation (or lack thereof) of a stock’s volatility to that of the S&P 500. In short, a beta of 1 means a stock essentially tracks the overall market, a higher number means the stock is more volatile, and a lower number means it’s less volatile.
This matters during a bear market, because when stocks as a whole are doing poorly, high-beta stocks tend to be doing the worst as investors flee riskier positions.
The QuantShares’ U.S Market Neutral Anti-Beta Fund (BTAL) capitalizes on this trend by shorting high-beta stocks and purchasing low-beta stocks.
There’s little to go on performance-wise, as this ETF only launched in late 2012. However, it hasn’t been hit nearly as hard as other pure bear funds so far in 2013’s bull market. Losing 4.7%
In terms of the performance, there is not much to go on because it was launched in late 2012. Yet it has not gotten hit as hard as other pure bear funds amid the S&P 500’s nearly 13% year-to-date run. While funds like PSSAX and HDGE have declined in the low double-digits, BTAL has only fallen off by less than 5%.
BTAL charges 1.49% in expenses.
Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.