How to hedge against the World stock ETFs?
Hi There,
Since I am day trading the World stock ETFs I am exposed to the overall market risk of financial/debt/currency (Euro in particular) risks. The three ETFs I want to hedge against are below.
XTRACKERS MSCI WORLD EX USA UCITS ETF
ISHARES III PLC - ISHARES MSCI WORLD SMALL CAP UCITS ETF
VANGUARD FTSE ALL-WORLD UCITS ETF
I am trying to find a smart low risk way to hedge against situations like Covid/2008 where the stock market can be low for year(s) highly impacting my strategy and portfolio.
One way is to keep cash in reserve to buy those same ETFs on a discount, but I suck at keeping cash uninvested and you never know how big is the dip ;). What I would prefer is to have an ETF or some other low risk investment that hedges against any stock market downturns and is easily bought/sold on a daily basis at every average broker like Trading212.
There are inverse ETFs, but those products are misleading since they are actually ETPs and are risky due to having daily resets.
When asking AI it mostly suggests risky investments like CFD/short selling.
The VIX index is also very risky.
The only thing I can think of is commodity ETFs, but a simple look at the best performing shows absurdly high correlation to the global stock market performance, so it seems pointless to invest in such.
Is there maybe some bonds ETF that showed high growth during the downturns of Covid and 2008?
Another way to hedge would likely be to buy ETF of emerging markets/China/India etc., as those would obviously be less impacted in market crisis impacting the 3 ETFs I trade.
I found interesting product just now XTRACKERS MSCI WORLD UTILITIES UCITS ETF