Last year was a rough market, bringing equity risk to the forefront of investors’ concerns. So, AdvisorShares managing director James Carl told NYSE’s Judy Shaw at Exchange 2023 that the firm has been focused on making sure that clients understand the solutions they can use to manage their equity risk.
“Some of them focus on tail hedging, some of them short equity markets, some of them use options,” Carl told Shaw for ETF Leaders, powered by the New York Stock Exchange. “So, I think understanding them and helping you manage… the emotion that comes with equity risk is a great potential tool to use in your portfolio.
Two AdvisorShares solutions that Carl recommended for investors to consider is the AdvisorShares Dorsey Wright Short ETF (DWSH ) and the AdvisorShares Ranger Equity Bear ETF (HDGE ). DWSH uses “negative momentum” to short large-cap U.S. equities. Meanwhile, Carl described HDGE as “a short equity product that shorts individual equities based on companies that may be using a little aggressive accounting, financial chicanery maybe, recognizing revenue this quarter when they shouldn’t be.”
“The two of them provide 100% short equity exposure,” Carl said before adding: “Understanding how they work and maybe using them as a small portion in your portfolio can help you manage that emotion that we all deal with when the markets go down.”
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