Short ETFs: taking an active approach to limited downside

Professional Adviser
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Emma Oakman considers how the creation of short ETFs has led to innovation and asks whether this tre...

Emma Oakman considers how the creation of short ETFs has led to innovation and asks whether this trend is set to continue The advent of short ETFs, which give the opposite performance of an underlying index, has helped ETFs break away from their traditionally passive role in portfolios. As volatility raced into the markets and scrutiny of managers’ performance and fees increased, these cheap, transparent products have been thriving as tactical trading and risk management tools. But shorting in an uncertain and volatile market highlights the dangers of unlimited losses, which has increasin...

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