How Do You Protect vs Crashes? (Poll)

Polls
1

What’s your go-to method to protect vs a potential market crash?

  • I don't. Just ride it out baby!
  • Multiple low correlation long-only strategies
  • An ETF like VIXY, BTAL or SH
  • Buy put options
  • Run my own short book
  • Market-timing and/or stop-losses
  • Varied asset classes (gold, bonds, crypto, Pokémon cards, etc.)
0 voters
2

Here’s a list of ETF diversifiers I’ve been exploring and currently using: CTA, GOLY, ILS, BTAL, CAOS, BOLD.

I find these interesting because they provide inverse or low-correlation return streams without the performance drag you typically see in simple inverse or volatility ETFs. In particular:

  • CTA offers exposure to managed futures strategies, which tend to shine in trend-driven markets.

  • GOLY provides gold exposure with a unique structure that can serve as a hedge in risk-off environments.

  • ILS taps into insurance-linked securities, which are generally uncorrelated to equity and bond markets.

  • BTAL is a long-short anti-beta strategy, designed to benefit in volatile or down markets.

  • CAOS and BOLD offer alternative approaches that balance growth with tail-risk protection.

I see these as helpful diversifiers for equity-heavy portfolios, especially during periods of macro uncertainty.

Curious to hear what others are using in this space. Are there any diversifiers or alternative ETFs you’ve found effective that don’t sacrifice long-term returns?

4 Likes
3

All of the above. It all depends on my outlook, the market environment, and the expected returns of each asset class

4

My SPY puts finally worked out. I had been expecting a small correction to happen at some point this year.

October has a reputation for market crashes — it’s usually volatile, but not necessarily the worst month. In fact, it often ends up being a pivot point for markets.

2 Likes