The exchange-traded fund industry is trying to make pair-trading strategies more accessible to everyday investors.
Michael Venuto of Tidal Financial Group last month filed for eight two-stock ETFs: going long on one stock and short on the other.
“They should probably come out in about two to three months,” Venuto, the company’s chief investment officer and co-founder, said on CNBC’s “Halftime Report” this week.
These new ETFs aim to simplify long-short trades by bundling both positions into one product and eliminating the need for separate trades, according to Tidal Financial’s website.
VettaFi’s Todd Rosenbluth noted the convenience these ETFs bring to investors.
“Instead of having to short something yourself, the ETF is going to do that for you. And so there’s a convenience factor,” the company’s head of research said this week on CNBC’s “ETF Edge.”
This streamlined approach could attract investors looking for easy access to balance market positions.
Rosenbluth also pointed out the potential popularity of these ETFs.
“I think ETF adoption will continue even though we have some of these niche-oriented products in addition to the Vanguard 500 in a portfolio,” Rosenbluth said.