Trillions Protecting Your Portfolio With ETFs
13 snips
Oct 9, 2025 Bernard Goyder, a Bloomberg options and volatility reporter, dives deep into the world of hedging strategies in this engaging discussion. He explains the intricacies of the VIX and the pitfalls of VIX ETFs, highlighting their potential for high returns alongside significant risks. The conversation also covers simpler personal finance strategies as alternatives, and the appeal of buffer ETFs, especially for retirees seeking downside protection. Goyder wraps up with practical advice on navigating these complex financial instruments.
AI Snips
Chapters
Transcript
Episode notes
High Markets Drive Hedge Demand
- Markets at all-time highs make investors nervous and drive interest in hedges and ETFs.
- Many ETF hedging tools exist but require reading the "owner's manual" before use.
VIX ETPs Grow Despite Structural Drag
- VIX ETPs surged in assets despite structural decay from rolling futures.
- Their lifetime returns are often deeply negative because roll costs erode value.
Use VIX Allocations Sparingly And Temporarily
- Use tiny allocations to VIX-style products only when you expect a short-term spike.
- Sell immediately after the event to avoid erosion from roll costs.