BTAL - BTAL Is Possibly The Most Misunderstood Market-Neutral ETF
2024-06-17 11:38:34 ET
Summary
- BTAL is an anti-beta market-neutral ETF, not beta-neutral, with imbalanced long and short positions.
- High-beta stocks fall further in market crashes, underperform in calm markets, and perform well after market bottoms.
- Tactical holding of BTAL based on VIX levels can provide a small performance boost and reduce drawdowns in market crashes.
BTAL is an anti-beta market-neutral ETF. It invests long in low-beta stocks and shorts high-beta stocks on a dollar-neutral basis within sectors. At first glance, this may sound like a balanced fund that has a high potential to generate positive total returns in all markets. But one look at the return profile of BTAL and you will notice flat or negative returns with volatility....
BTAL Is Possibly The Most Misunderstood Market-Neutral ETF