Saturday, September 08, 2012

New 'Tail Hedge' ETF Hunts Black Swans - Seeking Alpha

New 'Tail Hedge' ETF Hunts Black Swans - Seeking Alpha:

It is a little eearly in the school year for my classes to cover this, but oh well, we will anyways!  lol

" First Trust recently launched a new "Black Swan" styled ETF that pairs a tail risk hedge with equities, which will help limit an investor's downside risk.....The tail hedging strategy protects a portfolio from extreme market oscillations as a result of unpredictable, random and unexpected events, or so-called Black Swan events. The term was coined in a 2007 book by Nassim Nicholas Taleb published right before the financial crisis hit."

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