The exchange-traded fund industry is working to make pairs trading strategies more accessible to everyday investors.
Michael Venuto of Tidal Financial Group applied for eight two-stock ETFs last month: long one stock and short the other.
“They’ll probably come out in about two or three months,” Venuto, the company’s chief investment officer and co-founder, said this week on CNBC’s “Halftime Report.”
The new ETFs aim to simplify long-short trading by bundling the two positions into one product and eliminating the need for separate trades, according to the Tidal Financial website.
VettaFi’s Todd Rosenbluth noted the convenience these ETFs bring to investors.
“The ETF will short you instead of you having to short yourself. So there’s a convenience factor,” the firm’s head of research said this week on CNBC’s “ETF Edge.”
This streamlined approach can appeal to investors looking for easy access to balanced market positions.
Rosenbluth also noted the potential popularity of these ETFs.
“I think ETF adoption will continue, even if we have some niche products in the portfolio alongside the Vanguard 500,” Rosenbluth said.
About The Author
