Do You Play Defense?

Do you defend your core holdings in your portfolio? If not you should. The individual investor has a wide variety of vehicles to choose from to help protect/hedge a portfolio from downside risk. When the market tanks it usually takes everything down with it. It doesn't matter how solid of a company or mutual fund you own, it will more than likely get dragged down with the market as a whole.

 

Here are some examples of ETFs (Exchange Traded Funds) that can help soften the blow from a market "correction". These vehicles involve leverage so consult your financial professional for further information.

 

Is most of your portfolio in Canadian equities? HXD.TO can be used to profit when the TSX Composite goes down.

Are you overexposed to the Canadian Oil and Gas sector? HED.TO will go up when the sector sells off like it has recently.

Do you have exposure to some or all of the Canadian banks? HFD.TO will help reduce your risk by rising when the bank shares are getting sold.

 

These are only a few of the many vehicles available to protect your hard earned dollars invested in the equity markets.

 

Want to learn more? Contact me to find out how I can help.