Popular ETF categories: Equity, Commodity, Bond, Currency.

Market Neutral ETFs

The market-neutral Exchange Traded Funds are more resistant against changes in liquidity due to the strategy's balanced nature. The market-neutral strategy may be used on the most of the financial instruments, for example merger arbitrage. It is an investment strategy basing on investing a similar amount of assets in long and short positions in different stocks. A market neutral strategist is long in certain instruments while shorting other in such a way that his portfolio has no net exposure to the broad market moves. This strategy is oriented in profit taking from both increasing and decreasing prices. When the movements of asset prices are in the line with investors’ expectations then investors earn. In case of a failure, the majority of the losses are covered by simultaneously taking the opposite position. The goal of the market neutral strategy is to be independent from the behavior of the financial markets and cyclical fluctuations of bear and bull markets. In order to achieve this, it is necessary to construct a portfolio, which will be characterized by a beta coefficient very close to zero – the maximum possible risk avoidance.

Strongest Trends Summary: Market Neutral ETFs

Long-Short

Equity

Anti-beta ETF is in the long-term up 15% in 1 year.
Value, Long-Short, Market Neutral ETF is in the long-term down -11% in 1 year.

Other Long-Short

Fund of Funds, Market Neutral ETF is in the medium-term down -3% in 4 months.
G10 ETF is in the long-term down -8% below S&P in 3 years.

Market Neutral ETFs List

Symbol Company Name Price Change Total net assets Total expense ratio
BTAL FQF Trust 19.41 -0.21%
CHEP FQF Trust 27.6
DBV Powershares DB G10 Currency Harvest Fund 24.92 -0.2% 0.81%
ICI iPath iPath Optimized Currency Carry ETN 41.04
MOM FQF Trust 22.82
QMN Index IQ ETF Trust 25.47 0.12% 0.75%
SIZ FQF Trust 21.7 -1.23%