HDGEAdvisorShares Ranger Equity Bear ETF
HDGE Fund Description
HDGE attempts to achieve positive returns by shorting US-listed companies believed to have low earnings quality or use aggressive accounting policies.
HDGE Factset Analytics Insight
HDGE uses a combination of quantitative and fundamental factors to build a portfolio of short interests in US-listed stocks. Because shorting stocks is an expensive endeavor—one must pay interest and dividends on the borrowed shares—HDGE's fee is extremely high. (Such expenses don’t show up in headline fee of some vanilla inverse funds but still flow through to the bottom line.) The fund aims to pick the firms with low earnings quality or aggressive accounting practices and profit when the market prices adjust to the reality of these distortions. A long bull market is a tough climate for short-only strategy, and returns show it. The fund trades in sizable volumes but spreads can be high. Nevertheless, despite lackluster performance, HDGE still enjoys a solid asset base. Investors looking for better liquidity and lower headline fees can consider a 'vanilla' inverse equity fund like SH.
HDGE CHARTS AND PERFORMANCE
HDGE Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of HDGE. HDGE is rated a 5 out of 5.