Traders and investors looking for more stability and relative safety should consider these 5 ETFs, whose ultra-low betas prove they are smart buys, even in today’s very volatile conditions.
To call the last few weeks volatile would be an understatement. Markets have had some of their most violent trading days in recent memory, as the beginning of August brought multiple days with swings higher than 5% in major equity indices.
Amid a botched debt negotiation and a downgrade of US debt by Standard and Poor’s, investors have been on something of a rollercoaster ride as of late.
While many hoped that September would bring markets into the black, they were unfortunately let down. Just two days into the month, a dismal report came in with zero jobs added for the entire month of August, a level that was far less than consensus estimates. Now, post-Labor-Day trading in the US has delivered fresh fears about global debt.
So with September keeping the hits coming, investors are furiously scrambling to their favorite safe havens. While some have left equities altogether, many are simply looking for alternative safe options without moving their portfolio into asset classes like fixed income.
Below, we outline five ETFs with low betas for investors looking for stable equities in an environment that is anything but.
Advisorshares Trust Dent Tactical ETF (DENT)
This product is an active ETF from AdvisorShares which seeks to achieve its investment objective by identifying, through proprietary economic and demographic analysis, the overall trend of the US and global economies and how consumer spending patterns may change based on this analysis.
Like many active products from this issuer, the holdings are updated on a daily basis on the fund’s home Web site, allowing for complete transparency. Though DENT does charge a rather significant fee of 1.50%, its beta of 0.3 not only makes for a compelling safe haven, but also comments on the ability of active funds to outperform their passive counterparts in particular market environments.
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