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In a volatile stock market, investors usually focus on a long-term strategy, which keeps them protected from concurrent ups and downs. But that is easier said than done, and adding market-neutral funds to their portfolio often bails them out in terms of hedging their risk in the prevailing market conditions.
Market-neutral funds are designed to provide returns that are relatively unaffected by the state of the overall stock market. Adding these to the portfolio should boost returns and reduce risk. They typically deliver returns by combining long and short positions in various securities.
AQR Diversified Arbitrage Fund seeks to outperform the ICE BofAML U.S. 3-Month Treasury Bill Index while controlling its tracking risk relative to this benchmark. ADANX invests in a diversified portfolio of instruments, including equities, convertible securities, debt securities, loans, warrants, options and swaps.
AQR Diversified Arbitrage Fund has three-year annualized returns of 8.5%. As of September 2022, ADANX held 466 issues, with 61.3% of its assets invested in TOTAL SHORT TERM INVESTMENT.
Vanguard Market Neutral Fund typically follows a market-neutral strategy, which it defines as a strategy designed to produce a portfolio that is neutral with respect to general stock market risk. This is referred to as beta neutrality.
Vanguard Market Neutral Fund has three-year annualized returns of 7.4%. Cesar Orosco has been one of the fund managers of VMNIX since 2021.
Hussman Strategic Growth Fd typically invests most of its assets in common stocks picked by investment advisors. HSGFX may use options and index futures, and other hedging strategies, to balance the fund’s exposure during unfavorable market conditions.
Hussman Strategic Growth Fd fund has three-year annualized returns of 10.3%. HSGFX has an expense ratio of 1.23% compared with the category average of 1.92%.
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3 Market-Neutral Funds to Dodge Market Volatility
In a volatile stock market, investors usually focus on a long-term strategy, which keeps them protected from concurrent ups and downs. But that is easier said than done, and adding market-neutral funds to their portfolio often bails them out in terms of hedging their risk in the prevailing market conditions.
Market-neutral funds are designed to provide returns that are relatively unaffected by the state of the overall stock market. Adding these to the portfolio should boost returns and reduce risk. They typically deliver returns by combining long and short positions in various securities.
Below, we share with you three top-ranked market-neutral funds, viz., AQR Diversified Arbitrage Fund (ADANX - Free Report) , Vanguard Market Neutral Fund (VMNIX - Free Report) and Hussman Strategic Growth Fd (HSGFX - Free Report) . Each has a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of -neutral funds.
AQR Diversified Arbitrage Fund seeks to outperform the ICE BofAML U.S. 3-Month Treasury Bill Index while controlling its tracking risk relative to this benchmark. ADANX invests in a diversified portfolio of instruments, including equities, convertible securities, debt securities, loans, warrants, options and swaps.
AQR Diversified Arbitrage Fund has three-year annualized returns of 8.5%. As of September 2022, ADANX held 466 issues, with 61.3% of its assets invested in TOTAL SHORT TERM INVESTMENT.
Vanguard Market Neutral Fund typically follows a market-neutral strategy, which it defines as a strategy designed to produce a portfolio that is neutral with respect to general stock market risk. This is referred to as beta neutrality.
Vanguard Market Neutral Fund has three-year annualized returns of 7.4%. Cesar Orosco has been one of the fund managers of VMNIX since 2021.
Hussman Strategic Growth Fd typically invests most of its assets in common stocks picked by investment advisors. HSGFX may use options and index futures, and other hedging strategies, to balance the fund’s exposure during unfavorable market conditions.
Hussman Strategic Growth Fd fund has three-year annualized returns of 10.3%. HSGFX has an expense ratio of 1.23% compared with the category average of 1.92%.
To view the Zacks Rank and the past performance of all market-neutralfunds, investors can click here to see the complete list of market neutralfunds.
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