Ranger Equity Bear ETF
There are a host of bear-market funds out there, but most have a hard tie to a major index — for instance, the ProShares Short Dow30 ETF (DOG) that goes down almost exactly 1% for every 1% gain in the Dow Jones Industrial Average.
But the AdvisorShares’ Ranger Equity Bear ETF (HDGE) is different. This spring, when the major indices were up about 5%, HDGE was flat despite having a strategy of shorting stocks.
How does that happen? Well, because instead of just shorting an entire index, the management team makes strategic bets on bad stocks it expects to crash and burn. Top holdings right now include IBM (IBM), Caterpillar (CAT) and Monsanto (MON), among others.
HDGE is pretty good at picking bad stocks. And while the bear ETF has underperformed this year (no shock amid a 19% rally), it could be a good way to hedge your bets against a market correction.
Hence the ticker!