How Do You Use ETF Hedge Fund Strategies?
Hedge funds are an elusive form of investing that is often misunderstood by the general public. Historically, people who solicited large sums of money from already rich people and exploited the market to make even more money ran hedge funds. Since the funding was private, these people could avoid many of the rules and regulations that other investors were forced to follow. There are some ways to use hedge fund strategies with exchange-traded funds (ETFs). Shift some of your investments to short-term ETFs. Hedge fund strategies don’t look for long-term growth, and they try to predict how a stock will behave in 2 days rather than 2 years. Short sell ETFs by borrowing ETFs from your broker and selling them. You will have to give back an equal number of the shares that you borrowed, so you must purchase them again. Short selling assumes that you know a stock will drop in price, so you buy it at a lower price, reimburse your broker and keep the difference in profit. Negotiate for futures co
