When To Use Options, Not ETFs

February 04, 2019

ETF.com: You'll be speaking at Inside ETFs, on "The Hedge Fund Approach: The Smart Money in ETFs" panel. Would you give our readers some insight into what you plan to discuss in the session?

Friesen: A lot of the panel has an institutional background, so we'll focus on actionable trade ideas using ETFs, or at least using ETFs for a portion of the strategy.


ETF.com: But didn't you just tell me that you don't really use ETFs all that much at your hedge fund?

Friesen: [laughs] Well, I'm going to talk about how somebody could use ETFs to do what we do, somebody who doesn't necessarily have the constraints we have. The plan is to translate some of our ideas and show how they could be implemented in ETF form.

ETF.com: Fair enough. Anything you can highlight as a sneak peek?

Friesen: I imagine that of the main themes that'll be discussed might be the weakening of the U.S. dollar over the course of the next 12 months, if that takes place as the Fed goes on hold. So, if that's your highest-conviction idea, what ways could you play that as alternatives to owning the broader market?

That could mean moving down to the sector level and into ETFs that have higher correlation with the U.S. dollar. Or if you have the view that a lower U.S. dollar will coincide with stable-to-lower interest rates, then maybe [you look at] the more interest-rate-sensitive ETFs that benefit from a lower rate/ weaker dollar environment.

Contact Lara Crigger at [email protected]

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