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3 Long/Short ETFs to Buy as Wall Street Takes a Hit

U.S. stocks slipped to the level of more than a one-month low at the start of October and are set to see the steepest decline in nearly six weeks. The move has apparently followed subdued private payroll data.

Though private payrolls increased 135,000 in September, ahead of Dow Jones estimate of 125,000, according to ADP and Moody’s Analytics, the monthly average for 2019 fell to 145,000 from 214,000 a year earlier. This shows that monthly private sector hiring has decelerated, intensifying fears that the trade war with China has been quite a bother for the United States.

The Dow Jones Industrial Average retreated 1.9% on Oct 2, the S&P 500 was off 1.8% and the Nasdaq Composite fell about 1.6% on Oct 25. Global equity benchmarks also hit their lowest levels in a month on fears that the trade war could lead the global economy to a recession.

The new European Union executive sees chances of “increased international tensions over trade and the environment even before it takes office in November by promising a carbon border tax to shelter its industry from the cost of cutting emissions.”

No wonder, investors sought safety and increasingly placed bets on long/short ETFs to find a way around the volatility. Below we highlight a few of these that have beaten the Wednesday market blues and surpassed the S&P 500 (see all Long-Short ETFs here).

AGFiQ US Market Neutral Anti-Beta Fund BTAL — Up 1.2% on Oct 2

The underlying Dow Jones U.S. Thematic Market Neutral Anti-Beta Index is a long/short market neutral index that is dollar-neutral.

WisdomTree Dynamic Bearish U.S. Equity Fund DYB — Up 1.4%

The underlying WisdomTree Dynamic Bearish U.S. Equity Index includes long equity positions or long U.S. Treasury positions and short equity positions. It charges 48 bps in fees.

Gadsden Dynamic Growth ETF GDG — Up 0.3%

The Gadsden Dynamic Growth ETF is an actively-managed ETF that seeks to achieve its investment objective by investing approximately 80% of its total assets with exposure to global equity securities based on a long-term view of macroeconomic factors & roughly 20% of its total assets to add or reduce exposure to one or more asset classes based on a short-term view of the market.

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AGFiQ US Market Neutral Anti-Beta Fund (BTAL): ETF Research Reports
 
WisdomTree Dynamic Bearish U.S. Equity Fund (DYB): ETF Research Reports
 
Gadsden Dynamic Growth ETF (GDG): ETF Research Reports
 
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Zacks Investment Research
 
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