BTAL: Could This Market Neutral ETF Save Your Portfolio In 2025?

2025-03-07 07:00:00 ET

Summary

• The AGF U.S. Market Neutral Anti-Beta Fund ETF is a strong hedge against market downturns, outperforming the S&P 500 during recent volatility.
• BTAL's strategy involves going long on low-beta stocks and short on high-beta ones, providing a negative correlation to the S&P 500.
• A 33-67 allocation between UPRO and BTAL could offer superior risk-adjusted performance, with lower volatility and better Sharpe ratios than the S&P 500 alone.
• Despite market challenges, the 33-67 strategy has returned +4% YTD in 2025, compared to the S&P 500's small losses, offering confidence in its resilience.

The new year has already presented challenges to the US stock market, which is now at a small YTD (year-to-date) loss. In great part driven by fears over the impact of the new tariff regime and the return of the stagflation debate , the S&P 500 ( SPY ) has already dipped more than 6% from the peak as I type this sentence (see chart below), the second sharpest pullback in about 18 months in a correction process that "feels" far from over....

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