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The exchange-traded fund industry is trying to make pair-trade strategies more accessible to everyday investors.
Tidal Financial Group’s Michael Venuto filed last month for eight two-stock ETFs: going long one stock and short the other.
“They should come out probably in about two or three months,” Venuto, the firm’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 U.S. Securities and Exchange Commission filings.
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 that’s out there,” the firm’s head of research said on CNBC’s “ETF Edge” this week.
This streamlined approach could attract investors looking for ease of access in balancing market positions.
Rosenbluth also pointed out the potential popularity of these ETFs.
“I think the ETF adoption is going to continue, even if we have some of these niche-oriented products sitting side by side with Vanguard 500 in a portfolio,” Rosenbluth said.
CORRECTION: This article has been updated to reflect the Securities and Exchange Commission’s filings description of two-stock ETFs.