The Cheapskate Hedge Fund ETFdb Portfolio is now available to ETFdb Pro members and those with a free 7-day trial of the Pro subscription. This new portfolio, one of more than 30 all-ETF model portfolios available at ETFdb.com, is designed for cost conscious investors who are looking to tap into the lucrative world of hedge fund investments.
The Cheapskate Hedge Fund ETFdb Portfolio offers exposure to a wide array of trading and investment strategies that are otherwise far too complex and costly for mainstream investors to implement on their own. The investment thesis behind this portfolio may appeal to those who are looking for a source of uncorrelated returns, a well known benefit of hedge funds, while still keeping expenses low, helping to maximize risk-adjusted returns over the long haul.
The distinguishing feature of this ETFdb portfolio is that it invest entirely in non-traditional ETPs, steering clear of a “plain vanilla” stock-and-bond portfolio composition. This portfolio allocates 60% of its total assets to alternative funds: these products strive to deliver uncorrelated, hedge fund-line returns by offering diversified exposure to a variety of asset classes including, domestic and international equities, fixed income securities, as well as commodities and currencies. Some of the underlying strategies include long/short trading, merger arbitrage, and actively managed futures [see How Have The Hedge Fund ETFs Held Up In The Crisis?]. The Cheapskate Hedge Fund ETFdb Portfolio further sets itself apart as its fixed income component undertakes a multi-pronged approach in defending against inflation by investing in a wide array of domestic and foreign inflation-protected bonds as well as commodities. We have also rounded out exposure with an allocation to a one-of-a-kind commodity ETP which uses a quantitative approach in establishing long/short exposure across several commodity sectors, helping to smooth out volatility over the long haul.
The complete Cheapskate Hedge Fund ETFdb Portfolio is available to ETFdb Pro members or with a free 7-day trial to ETFdb Pro. Also check out our new Low Volatility ETFdb Portfolio , as well as our High Tech ETFdb Portfolio.
Also included with the ETFdb Pro subscription are more than 30 all-ETF model portfolios, including both retirement-focused and more tactical themed strategies. [To see all that is included, a free sample of the Emerging & Frontier Markets ETFdb Portfolio is available to all ETFdb readers]
Disclosure: No positions at time of writing.