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Buy These 3 Market-Neutral Funds to Boost Your Portfolio
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In a volatile stock market, investors usually focus on a long-term strategy, which protects them from the concurrent ups and downs. But that is easier said than done, and adding market-neutral funds to their portfolio often bails them out in terms of hedging their risk in the prevailing market conditions.
Market-neutral funds are designed to provide returns that are relatively unaffected by the state of the overall stock market. Adding these to the portfolio should boost returns and reduce risk. They typically deliver returns by combining long and short positions in various securities.
Touchstone Ares Credit Opportunities seeks capital appreciation by investing most of its net assets, along with borrowings, if any, in a wide variety of debt securities or other debt instruments. TMAYX invests in U.S. and foreign debt instruments.
Touchstone Ares Credit Opportunities has a three-year annualized return of 4.8%. Chris Mathewson has been one of the fund managers of TMAYX since September 2019.
AQR Diversified Arbitrage aspires to outperform the ICE BofAML US 3-Month Treasury Bill Index after fees while limiting its tracking risk compared to this benchmark. ADANX invests in a diverse portfolio of products such as stocks, convertible securities, debt securities, loans, warrants and derivative instruments.
AQR Diversified Arbitrage has a three-year annualized return of 6.9%. As of June 2023, ADANX held 173 issues, with 65.4% of its assets invested in Total Short-term Investments.
Hussman Strategic Growth typically invests most of its assets in common stocks picked by its investment advisors. HSGFX may use options and index futures, and other hedging strategies to balance the fund’s exposure during unfavorable market conditions.
Hussman Strategic Growth Fund fund has three-year annualized returns of 3.7%. HSGFX has an expense ratio of 1.13% compared with the category average of 1.92%.
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Buy These 3 Market-Neutral Funds to Boost Your Portfolio
In a volatile stock market, investors usually focus on a long-term strategy, which protects them from the concurrent ups and downs. But that is easier said than done, and adding market-neutral funds to their portfolio often bails them out in terms of hedging their risk in the prevailing market conditions.
Market-neutral funds are designed to provide returns that are relatively unaffected by the state of the overall stock market. Adding these to the portfolio should boost returns and reduce risk. They typically deliver returns by combining long and short positions in various securities.
Below, we share with you three top-ranked market-neutral funds, viz., Touchstone Ares Credit Opportunities (TMAYX - Free Report) , AQR Diversified Arbitrage (ADANX - Free Report) and Hussman Strategic Growth (HSGFX - Free Report) . Each has a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of market-neutral funds.
Touchstone Ares Credit Opportunities seeks capital appreciation by investing most of its net assets, along with borrowings, if any, in a wide variety of debt securities or other debt instruments. TMAYX invests in U.S. and foreign debt instruments.
Touchstone Ares Credit Opportunities has a three-year annualized return of 4.8%. Chris Mathewson has been one of the fund managers of TMAYX since September 2019.
AQR Diversified Arbitrage aspires to outperform the ICE BofAML US 3-Month Treasury Bill Index after fees while limiting its tracking risk compared to this benchmark. ADANX invests in a diverse portfolio of products such as stocks, convertible securities, debt securities, loans, warrants and derivative instruments.
AQR Diversified Arbitrage has a three-year annualized return of 6.9%. As of June 2023, ADANX held 173 issues, with 65.4% of its assets invested in Total Short-term Investments.
Hussman Strategic Growth typically invests most of its assets in common stocks picked by its investment advisors. HSGFX may use options and index futures, and other hedging strategies to balance the fund’s exposure during unfavorable market conditions.
Hussman Strategic Growth Fund fund has three-year annualized returns of 3.7%. HSGFX has an expense ratio of 1.13% compared with the category average of 1.92%.
To view the Zacks Rank and the past performance of all market-neutral funds, investors can click here to see the complete list of market-neutral funds.
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