FTLS: This Long-Short ETF Is Still A Buy

2025-02-20 03:37:06 ET

Summary

• FTLS is a long/short ETF with a strong performance history, offering low volatility and shallow drawdowns, making it a robust alternative to SPY.
• The fund's active management and sectoral positioning allow it to capture upside while minimizing downside, outperforming in down markets.
• With the current high P/E ratios, switching from SPY to FTLS can help manage risk and limit potential losses during market corrections.
• FTLS's impressive Sharpe and Alpha ratios highlight its effective risk-adjusted returns, making it a prudent choice for defensive retail investors.

Thesis

With equities seemingly making new highs every day, investors might ask themselves if the asset class is not overvalued. While it is almost impossible to call a top, there are strategies one can implement in order to manage risk. Managing your downside is a tool that retail investors should use rather than trying to time the market. We have covered in the past the First Trust Long/Short Equity ETF ( FTLS ), a fund which has delivered since our rating:

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