Exchange-traded fund (ETF) investors may be looking to hedge their bets on whether or not the market will continue its decade-long bull market run. One such strategy is to limit the potential downside by purchasing a reverse-weighted ETF fund.
Investors should be aware of the risks and adjust their portfolios accordingly. But setting aside a portion of funds in a reverse-weighted ETF would be a judicious way to guard against the vagaries of an index that is dominated by high-flying tech stocks and their future prospects.
