Short ETFs

[BoodaGazelle]

A few. years ago, I bought shares of SH at Fidelity, thinking that it would help hedge my portfolio against major market downturns.

Well, it went up a bit, but so far it has not even broke even.

Now, I know my attempt at “hedging” was not very sophisticated, but was it totally stupid? Or will it keep climbing and perform the function I hoped it would?

And BTW, it is only about $8K, so it was NOT a large bet... mostly I wanted to see if it would work.

 

[pb4uski]

It look like it has done what you wanted. Red line is VTI. Blue line is SH. Yellow line is 50/50. For Jan 2017 to Feb 2020.

https://www.portfoliovisualizer.com...ymbol2=VTI&allocation2_2=100&allocation2_3=50

For March so far, VTSAX is down 25.5% and SH is up 24.6% so it looks like it has been a decent hedge.

 

[BoodaGazelle]

It look like it has done what you wanted. Red line is VTI. Blue line is SH. Yellow line is 50/50. For Jan 2017 to Feb 2020.

https://www.portfoliovisualizer.com...ymbol2=VTI&allocation2_2=100&allocation2_3=50

For March so far, VTI is down 25.5% and SH is up 24.6%.

Oops! I guess I didn't hedge enough!


Thanks, pb4uski, as always.

 

[pb4uski]

Yeah, but I don't know if you would have been better off if you did. If you go to the PV run the 50/50 combination just stands pat... probably doesn't even beat inflation.

I think what you mean to say is that you should have hedged more on March 8th.