Reducing Beta without shorting?

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Reducing Beta without shorting?

posted Oct 26, 2015

Does anyone know if it's possible? If so, what methods would you use?

4 responses

Simon Thornington

You could own less of whatever it is that has beta?

Michael Van Kleeck

If you're trying to reduce a positive beta, you could add some bond ETFs such as TLT or IEF, which have negative beta.

Inverse ETFs should do the trick, too.

Spencer Singleton

Certain etfs in general have lower beta as well XLP for example tends to have less fluctuation than the overall market. Adding certain criteria to adjust when owning the stock can reduce beta as well in addition to the things mentioned above I was just covering a few things that didn't seem to be covered yet.

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The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by Quantopian.

In addition, the material offers no opinion with respect to the suitability of any security or specific investment. No information contained herein should be regarded as a suggestion to engage in or refrain from any investment-related course of action as none of Quantopian nor any of its affiliates is undertaking to provide investment advice, act as an adviser to any plan or entity subject to the Employee Retirement Income Security Act of 1974, as amended, individual retirement account or individual retirement annuity, or give advice in a fiduciary capacity with respect to the materials presented herein. If you are an individual retirement or other investor, contact your financial advisor or other fiduciary unrelated to Quantopian about whether any given investment idea, strategy, product or service described herein may be appropriate for your circumstances. All investments involve risk, including loss of principal. Quantopian makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances.